EUR/USD: Euro-zone’s Markit manufacturing PMI climbed more-than-expected in May

EUR/USD: Euro-zone’s Markit manufacturing PMI climbed more-than-expected in May

EURUSD Movement

For the 24 hours to 23:00 GMT, the EUR declined 0.27% against the USD and closed at 1.0950.

On the macro front, Euro-zone’s Markit manufacturing PMI climbed to 39.5 in May, more than market expectations for a rise to a level of 38.0 and compared to a level of 33.4 in the previous month. Additionally, the preliminary Markit services PMI surged to 28.7 in May, recording its highest level in three months and more than market forecast for a rise to a level of 25.0. In the prior month, the PMI had recorded a reading of 12.0. Separately, Germany’s Markit manufacturing PMI advanced to 36.8 in May, less than market anticipations for a rise to a level of 39.2 and compared to a reading of 34.5 in the earlier month. Meanwhile, the Markit services PMI rose more-than-expected to 31.4 in May, compared to a reading of 16.2 in the previous month.

In the US, the initial jobless claims dropped to 2438.0K in week ended 15 May 2020, less than market expectations for a fall to a level of 2400.0K and compared to a reading of 2687.0K in the prior week. Additionally, the Philadelphia Fed manufacturing survey climbed to -43.1 in May, less than market forecast for a rise to a level of -41.5 and compared to a reading of -56.6 in the previous month. Meanwhile, the preliminary Markit manufacturing PMI rose to 39.8 in May, more than market expectations for a rise to a level of 38.0 and compared to a reading of 36.1 in the previous month. Furthermore, the Markit services PMI advanced to 36.9 in May, more than market consensus for a rise to a level of 26.7. In the previous month, the PMI had recorded a reading of 26.7. Moreover, existing home sales dropped 17.8% on a monthly basis in April, less than market forecast and compared to a drop of 8.5% in the previous month.

  GBP/USD: British Pound trading a tad higher in the morning session

In the Asian session, at GMT0300, the pair is trading at 1.0943, with the EUR trading 0.06% lower against the USD from yesterday’s close.

The pair is expected to find support at 1.0917, and a fall through could take it to the next support level of 1.0890. The pair is expected to find its first resistance at 1.0989, and a rise through could take it to the next resistance level of 1.1034.

Moving ahead, traders would keep a watch on European Central Bank’s monetary policy meeting accounts, slated to release later today.

The currency pair is trading below its 20 Hr and 50 Hr moving averages.

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