EURUSD fell after the release of the ISM Manufacturing PMI, which strengthened the US Dollar, at least temporarily. The pair fell from 1.0691 to 1.0640, its highest level in a week.
After finding support at 1.0640, the EURUSD is returning to daily highs as the Dollar’s post-data impetus fades. The pair is trading about 1.0670, just below the 20-day Simple Moving Average. Notwithstanding the setback, the short-term trend remains positive.
After the release of the ISM data, the US dollar rose across the board and EURUSD fell.
USD is up on data, but only for a short time. In the United States, data released in February revealed that manufacturing activity declined again in February, with the ISM PMI moving from 47.4 to 47.7 (below 50 signifies contraction), compared to the market estimate of 48. The Purchase Price The index increased from 44.5 to 51.3, above forecasts of a 45 rating.
The ISM report’s inflation measures drove Treasury rates higher. The 10-year bond yield in the United States has surpassed 4% for the first time since November. The US Dollar responded well, but lost momentum in the last minutes as equities and commodities prices recovered.
After German inflation statistics that came in beyond forecasts, the Euro is among the best performers on Wednesday. The results put more strain on the European Central Bank. A 50 basis point rate raise appears to be needed in March, and the attention is on the upcoming meetings.
| Daily SMA20 | 1.0703 |
| Daily SMA50 | 1.0725 |
| Daily SMA100 | 1.0469 |
| Daily SMA200 | 1.033 |
