EURUSD wins ground as USD Drops.
The recent losses on the EURUSD pair from the previous two sessions are recovered. During Thursday’s European trading hours, the EURUSD pair is trading higher at about 1.0950. The Euro (EUR) was supported against the US Dollar (USD). By better Purchasing Managers Index (PMI) data from Germany and the Eurozone.
Both the Services PMI and the Eurozone Composite increased to 47.8 and 47.6, respectively.
The December figures of the German HCOB Composite and Services PMI both improved to 47.4 and 49.3, respectively. Although the Eurozone Composite and Services PMI increased to 47.6 and 48.8, respectively. Accordingly, for the specified month. Moreover, later in the day, German Consumer Price Index (CPI) data is scheduled for release.
A decline in US Treasury yields causes the US Dollar Index (DXY) to retrace some of its recent gains. As of this writing, the 2-year and 10-year rates are averaging 4.30% and 3.91%, respectively, while the DXY is trading lower at 102.30.
The stronger-than-expected ISM Manufacturing PMI report may have helped to keep the US dollar strong. The study showed that, in December, the reading increased to 47.4 from 46.7. Which was the prior figure; this exceeded the 47.1 market consensus. On the other hand, JOLTS Job Openings showed a different pattern. Declining to 8.79M, below the projected amount of 8.85M in November.
Federal Open Market Committee (FOMC) minutes from December show that members think the policy rate has either peaked.
Furthermore, the Federal Open Market Committee (FOMC) minutes from December show that members think the policy rate has either peaked or is close to peaking in the current tightening cycle. Nevertheless, Fed memeber point out that the precise course of the policy will depend on how the economy develops.
EURUSD investors waiting for labor data.
The labor market data releases from the United States on Thursday will be the market’s next focal point.
The labor market data releases from the United States on Thursday will be the market’s next focal point.
It is projected that the US ADP Employment Change for December will rise from the previous number of 103K to 115K. Furthermore, it is anticipated that Initial Jobless Claims, which were previously reported at 218K, will decrease to 216K for the week ending on December 29.
