- EUR / USD loses steam just after 1.1600.
- The September flash CPI for the EMU stood at 3.4%, the underlying CPI at 1.9%.
- US Manufacturing ISM improves to 61.1 in September.
The single currency cuts back some gains and motivates the EUR/USD to return to the area below 1.1600 by the end of the week.
EUR / USD pulls back from highs on bullish ISM
The EUR USD daily recovery falters before 1.1610 on Friday after the dollar appears to regain some ground following better-than-expected results from the ISM Manufacturing and the University of Michigan consumer sentiment index.
Additionally, US 10-year Treasury yields came back to life and are now flirting once again with the 1.50% level after US data. In Germany, 10-year yields plummet to the -0.23% region.
On the economic agenda, the ISM Manufacturing surprised to the upside and improved to 61.1 during the past month. In the same direction, the final Consumer Sentiment figure rose to 72.8 (from 70.3) during the same period. Finally, Markit’s manufacturing PMI beat estimates by 60.7, albeit slightly lower from 61.1 in August.
Technical levels
So far, the pair is gaining 0.21% at 1.1598 and faces the next bullish barrier at 1.1674 (10-day SMA) followed by 1.1755 (weekly high on September 22) and finally 1.1770 (55-day SMA). On the other hand, a break below 1.1562 (September 30 low) would target 1.1500 (round level) en route to 1.1495 (March 9, 2020 high).
.
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.