EUR/USD Drops To Near 1.0800 As US Dollar Advances Ahead Of Economic Data
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- EUR/USD declines due to increased risk aversion ahead of the ISM PMI release on Thursday.
- The US Dollar recovers intraday losses as Treasury yields rebound from multi-month lows.
- The downside of the Euro could be limited as the latest inflation data raised doubt on potential ECB rate cuts.
EUR/USD depreciates to near 1.0790 during the European session on Thursday. This decline is attributed to the improved US Dollar (USD) due to a recovery in US Treasury yields ahead of US key economic data including ISM Manufacturing PMI and weekly Initial Jobless Claims, both set to be released later in the North American session.
However, the US Dollar faced challenges due to the dovish sentiment surrounding the Federal Reserve’s (Fed) policy trajectory. Fed decided to keep rates unchanged in the 5.25%-5.50% range at its July meeting on Wednesday.
During a press conference post-interest rate decision, Federal Reserve Chair Jerome Powell stated that a rate cut in September is "on the table," while the Federal Open Market Committee (FOMC) did not want to commit to anything in the statement. Powell added that the central bank will closely monitor the labor market and remain vigilant for signs of a potential sharp downturn, per Reuters.
Across the pond, HCOB Eurozone Manufacturing Purchasing Managers Index (PMI) posted a reading of 45.8 for July, slightly above the expected and prior readings of 45.6, data showed on Thursday. Moreover, on Wednesday, the Harmonised Index of Consumer Prices (HICP) in the Eurozone rose by 2.6% YoY in July, compared to 2.5% in the previous month. This figure exceeded the estimation of 2.4%.
The latest inflation report in the eurozone raised doubt on potential European Central Bank (ECB) interest rate cuts in September. The Euro may attract some buyers due to the diminished odds of the ECB cutting interest rates at its meeting on September 14.
Euro PRICE Today
The table below shows the percentage change of Euro (EUR) against listed major currencies today. Euro was the weakest against the Swiss Franc.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.38% | 0.56% | -0.28% | 0.18% | 0.37% | 0.13% | -0.27% | |
| EUR | -0.38% | 0.18% | -0.65% | -0.21% | -0.00% | -0.25% | -0.65% | |
| GBP | -0.56% | -0.18% | -0.82% | -0.38% | -0.18% | -0.42% | -0.82% | |
| JPY | 0.28% | 0.65% | 0.82% | 0.43% | 0.63% | 0.33% | -0.05% | |
| CAD | -0.18% | 0.21% | 0.38% | -0.43% | 0.21% | -0.04% | -0.44% | |
| AUD | -0.37% | 0.00% | 0.18% | -0.63% | -0.21% | -0.24% | -0.63% | |
| NZD | -0.13% | 0.25% | 0.42% | -0.33% | 0.04% | 0.24% | -0.39% | |
| CHF | 0.27% | 0.65% | 0.82% | 0.05% | 0.44% | 0.63% | 0.39% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Euro from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent EUR (base)/USD (quote).
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