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  • EUR/USD continues to push lower during the American session.
  • US Dollar Index climbs above 90.00 after PMI data.
  • EUR/USD remains on track to close the week flat.

After moving sideways near 1.2230 during the first half of the day, the EUR/USD pair came under bearish pressure and touched a daily low of 1.2170. As of writing, the pair was down 0.45% on the day at 1.2172 and was looking to close the week flat.

Upbeat PMI figures lift USD

The renewed USD strength seems to be weighing on EUR/USD in the American session. The IHS Markit reported on Friday that the business activity in the private sector expanded at a record-setting pace in May with the Manufacturing PMI and the Services PMI both reaching new series highs at 61.5 and 70.1, respectively. Additionally, the report pointed out that price pressures continued to increase sharply, reviving concerns over high inflation.  

The benchmark 10-year US Treasury bond yield turned positive on the day after this report and the  US Dollar Index (DXY)   climbed above. As of writing, the DXY was up 0.35% on the day at 90.07.

Earlier in the day,  Christine Lagarde, President of the Europen Central Bank (ECB), reiterated that supportive policies will remain in place for months to come given the uncertainty of the recovery. These comments seem to be hurting the shared currency as well.  

Technical levels to watch for

 

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