The euro weakened against the US dollar after the release of preliminary Eurozone purchasing manager index (PMI) data. At the time of reporting, the EUR/USD exchange rate was 1.067.
EUR/USD Weaker On The Back Of Preliminary Eurozone PMI Data
A year ago, the euro was 1.100 to the US dollar. Analysts believe that a lower-than-expected value of the Hamburg Commercial Bank’s (HCOB) manufacturing PMI contributed to the feebler euro performance.
The HCOB manufacturing PMI missed estimates and came in at 45.6, a decline from March 2024’s 46.5. The latest indicators also fell short of the 50-point benchmark.
The HCOB composite PMI for the Eurozone did, however, top this target and came in at 51.4, which outstripped the predicted 50.8 and March’s 50.3. Data indicates that the HCOB services PMI, which rose to 52.9 in April 2024, underpinned this gain.
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The US S&P Global PMIs will likely further impact this forex pair. Analysts forecast a manufacturing PMI increase from 51.9 to 52.0 and a services PMI rise from 51.7 to 52.0. Values above 50 indicate growth, while those below this mean reflect declines.
Should the US PMIs come in higher than the forecasts, it may boost the US dollar further. Experts are closely watching the US services PMI as persistent inflation affects this market and keeps interest rates higher than those in Europe.
Borrowing costs over longer periods reportedly revived the US dollar to some extent, as higher interest rates mean a great influx of capital. On 16 April 2024, the EUR/USD hit a bearish hurdle when it recorded a significant low of 1.0601.
