EUR/USD back in focus on weak European data

Published on September 24, 2024 In the currency market, we started the week with the EUR/USD pair suffering after the preliminary PMI data for September from France and Germany, which did not meet expectations. Particularly striking was the French services PMI data, which was in contraction territory (48.3) compared to the expected 53.1. In the case of Germany, the manufacturing sector failed to recover and placed the PMI at 40.3. The market reaction led the pair to cross below 1.11 to 1.1083, to subsequently recover levels of 1.1120, where it starts today. The EUR/USD is struggling to continue its upward trend after the FED meeting, as the market begins to focus on the fragility of the European data and a possible new rate cut in October. On the rest of the panel, the pound marks a new annual high at 0.8318, after a very weak reading of the European PMIs. On the other hand, the Japanese yen is one of the currencies that has suffered the most in recent days after the BoJ meeting last week where Ueda indicated that they are in no hurry to raise rates. Thus, the EUR/JPY pair starts today at 160.58, far from the level of 157.90 that we saw in August and the USD/JPY at 144.45.

Hritik Verma: