The EUR/USD pair finally gathered directional strength following a two-week consolidative stage and reconquered the 1.0800 mark, currently trading ahead of the close at around 1.0820 and after hitting 1.0841, its highest in three weeks.
Building hopes for Fed eral Reserve rate cuts sent the USD to fresh three-week lows. Eurozone macroeconomic data keeps delivering positive surprises. EUR/USD could extend its rally and turn bullish once it clears the 1.0850 price zone. Multiple factors put the US Dollar under selling pressure, while Euro buyers were cautiously optimistic. What happened to the US Dollar? The USD kick-started the week by gapping lower as market participants continued digesting United States inflation data.
The ISM Services PMI contracted to 48.8 in June, much worse than the previous 53.8, while the ISM Manufacturing PMI printed at 48.5 in the same month, also worsening from the previous reading. In the Eurozone, macroeconomic data was mixed. On the one hand, the Hamburg Commercial Bank upwardly resided the June Manufacturing and Services PMIs, with the final EU Composite PMI reaching 50.9. Retail Sales in the EU rose a measly 0.1% in May.
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