- EUR / USD continues to push lower during the US session.
- The US Dollar Index climbs above 90.00 after the PMI data.
- EUR / USD still on track to close the week flat.
After moving sideways near 1.2230 for the first half of the day, the pair EUR/USD it was under downward pressure and hit a daily low of 1.2170. At time of writing, the pair was down 0.45% on the day to 1.2172 and was looking to close the week flat.
Optimistic PMI figures lift the USD
The renewed strength of the USD seems to be weighing on the EUR / USD in the American session. IHS Markit reported on Friday that business activity in the private sector expanded at a record pace in May with the manufacturing PMI and services PMI both reaching new highs at 61.5 and 70.1, respectively. Furthermore, the report noted that price pressures continued to increase dramatically, reviving concerns about high inflation.
The 10-year US Treasury yield turned positive for the day after this report and the US Dollar Index (DXY) rose higher. At time of writing, the DXY was up 0.35% on the day at 90.07.
Hours earlier, Christine Lagarde, president of the European Central Bank (ECB), reiterated that the support policies will be maintained during the coming months given the uncertainty of the recovery. These comments also appear to be hurting the shared currency.
Technical levels
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