- The US ISM non-manufacturing PMI falls to 55.1 in June vs. 55.9 expected.
- The USD held on the defensive amid the ongoing slide in the US bond yields.
- Traders now await fresh catalyst before positioning for near-term trajectory.
The EUR/USD pair held on to its mildly positive tone and had a rather muted reaction to the US ISM PMI, with bulls still awaiting a move beyond the 1.1300 handle.
The pair extended its sideways consolidative price action and remained confined in a narrow trading band despite a subdued US Dollar demand. Against the backdrop of the ongoing slump in the US Treasury bond yields to fresh multi-year lows, the greenback was further weighed down by Wednesday’s disappointing US macro releases.
The latest ADP report showed that the US private-sector employers added 102K new jobs in June, up from the previous month’s upwardly revised 41K but lower than 140K expected. Adding to this, the US ISM non-manufacturing PMI also misses consensus estimates and fell to 55.1 in June from 56.9 previous, though did little to provide any meaningful impetus.
The price action now seems to suggest indecision over the pair’s near-term trajectory ahead of Friday’s closely watched official US monthly jobs report – popularly known as NFP, which might now play a key role in determining the pair’s next leg of a directional move.
Technical levels to watch
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