EUR / USD cuts daily gains, stabilizes around 1.1870

• EUR / USD is still on track to end the lateralized day.
• The US dollar index remains above 92.00 after an initial decline.
• The US ISM Manufacturing PMI was lower than expected in July.

The EUR / USD pair rose further towards 1.1900 during European trading hours on Monday, but was unable to preserve its bullish momentum. At the time of writing, the pair is practically unchanged on the day at 1.1870.

DXY recovers to 92.00 level after EU data

Earlier in the day, risk appetite hindered the USD from finding demand and helped the EUR / USD rally. However, the major Wall Street indices fell back from daily highs set after the opening bell and allowed the dollar to regain its strength. At the moment, the US dollar index (DXY) is lateralized on the day at 92.08.

Data from the United States revealed that manufacturing activity continued to grow at a strong pace in July. The IHS Markit Manufacturing PMI improved to 63.4 in July’s final reading from the flash estimate of 63.1. Furthermore, the ISM Manufacturing PMI reached 59.5 and disappointed the market expectation of 60.9. The Prices paid component of the ISM survey decreased to 85.7 from 92.1 and the employment component improved to 52.9 from 49.9.

On Tuesday, June, the Producer Price Index (CPI) will be the only data on the European economic agenda. Later in the day, the ISM-NY Trade Conditions Index, IBD / TIPP Economic Optimism Index and June US Factory Order data will be seen for further momentum.

Technical levels