Euro Drops on Upbeat US ADP Jobs Data, Rallies on Weak PMI Print

May 02,2019 13:02   Source:Earnforex

Stacks of shiney euro coins plus some notesThe euro today rallied against the US dollar for the fourth consecutive session despite the lack of releases from the European docket due to the labour day holiday. The EUR/USD currency pair today rallied higher from the early European session as investors adopted a wait and see attitude towards the greenback ahead of the FOMC interest rate decision.

The EUR/USD currency pair today rallied from an initial low of 1.1212 to a high of 1.1248 in the American session following the release of the weak US ISM PMI data.

The currency pair traded in a tight sideways range during the Asian session as the major Asian markets such as Japan and China remained closed due to the labour day celebrations. The pair rallied higher in the early European session as the UK markets opened for business despite the closure of most European markets including German, French and Italian markets. The pair’s rally was largely driven by the US dollar dynamics given that the US Dollar Index hit a low of 97.27 today.

The release of the upbeat US ADP employment change report triggered a massive decline by the pair as the print came in at 275,000 new jobs beating expectations set at 180,000 jobs. However, the pair rallied higher after the release of the US ISM Manufacturing PMI, which came in at 52.8 versus the expected 55.0 print.

The currency pair’s short-term performance is likely to be affected by the FOMC rate decision scheduled for 18:00 GMT.

The EUR/USD currency pair was trading at 1.1246 as at 15:14 GMT having rallied from a low of 1.1212, The EUR/JPY currency pair was trading at 125.07 having dropped from a high of 125.22.


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