EUR/USD Hits 1.0940 Following Weak US PMI Data

The US Dollar is on fire! It surged across the board following the release of the S&P Global PMI survey data, leaving the EUR/USD pair retreating but still holding above daily lows. The pair fell faster than a skydiver without a parachute from nearly 1.1000 to daily lows.

What Boosted the US Dollar?

The PMI data signaled solid growth in private sector output, with the headline figure registering an 11-month high of 53.5 in April (Mar: 52.3). Companies noted that improved demand conditions supported growth, sending the Composite PMI soaring from 49.2 in March to 50.4. The S&P Global Manufacturing PMI and Service PMI also rose, exceeding expectations and coming in at 50.4 and 53.7, respectively.

The report sent US yields skyrocketing to daily highs, and the DXY turned positive, soaring towards 102.00. Meanwhile, the EUR/USD pair plummeted from its week-long high of 1.0993 to 1.0941, although it remained above the daily lows.

Earlier on Friday, the preliminary April PMI for the Euro Zone was a mixed bag, with the Manufacturing Index dropping from 47.3 to 45.5 while the Service rose unexpectedly from 55 to 56.6. Manufacturing hit the lowest level since May 200, while the Service rose to its highest level since April 2022.

Short-Term Outlook:

Although the EUR/USD pair weakened during the last hour, it still stays above the 1.0920/30 area. Traders can take advantage of the latest market analysis and make savvy decisions by exploring other blogs on Forex trading, currency pairs, technical analysis, fundamental analysis, and economic indicators on Edge-Forex‘s website.

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