EUR/USD: Upbeat China PMI fails to buoy the euro
- EUR/USD trades in the red despite above-forecast China's data.
- US stock futures drop, bond yields rise, keeping the US dollar better bid.
- On the data front, the focus is on Germany's labor market figures.
EUR/USD is trading on a weak note on Wednesday, falling even against upbeat Chinese data.
At press time, the currency pair is trading at 1.1223, representing a 0.10% decline on the day. The shared currency faced rejection at a high of 1.1240 during the Asian trading hours.
China's Caixin Purchasing Managers' Index (PMI) for the manufacturing sector rose to 51.2 in June from 50.7 in May. The pace of expansion, as represented by the above-50 reading, was the quickest in six months.
Even so, the futures tied to the S&P 500 are flashing red, keeping the anti-risk currencies like the Japanese yen better bid and EUR and commodity dollars under pressure. The failure to cheer the bullish Chinese data could be associated with the continued rise in the coronavirus cases in the US.
In addition, the uptick in Treasury yields could be drawing bid for the US dollar. At press time, the 10-year Treasury yield is trading at 0.68%, representing a three-basis-point rise on the day.
The tide, however, may change in favor fo the EUR bulls if the German Retail Sales (May) and the Unemployment Change (June) data scheduled for release during the European trading hours beat estimates. Across the pond, the focus would be on the US ISM Manufacturing (June), ADP Employment (June), and the FOMC Minutes.
Technical levels
Author
Omkar Godbole
FXStreet Contributor
Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.
