USD PRICE OUTLOOK: US DOLLAR ATTEMPTS TO BOTTOM AS MARKIT PMI DATA CRIMPS RISK APPETITEEUR/USD worth motion is coming below strai
USD PRICE OUTLOOK: US DOLLAR ATTEMPTS TO BOTTOM AS MARKIT PMI DATA CRIMPS RISK APPETITE
- EUR/USD worth motion is coming below strain following the most recent Markit PMI information
- The DXY Index is gaining floor to commerce again above the 93.00-price stage
- US Greenback exhibits indicators of bottoming in massive due to fading urge for food for danger
The US Greenback has ascended sharply to date immediately and now presses contemporary intraday highs measured by the DXY Index. It appears like USD worth motion is strengthening broadly in response to preliminary PMI information for August 2020 simply launched by IHS Markit. US PMI information not solely improved sequentially, however the main financial indicators topped market estimates for each providers and manufacturing elements. Precise figures are detailed on the DailyFX Financial Calendar.
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AUGUST 2020 IHS MARKIT PMI – UNITED STATES & EUROZONE COMPOSITE DATA
Largely pushed by proof of diverging financial progress trajectories between the Eurozone and United States, spot EUR/USD has pushed significantly greater over latest weeks. This has helped steer the broader US Greenback to its weakest stage in two years seeing that Euro efficiency makes up greater than half of the DXY Index composition.
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That mentioned, the bullish EUR/USD worth pattern has began to waver and is now exhibiting indicators of coming below strain because the US Greenback makes an attempt to base. US PMI information besting financial exercise throughout the Eurozone might function one basic driver with sufficient credence to offer the DXY Index with a significant increase and assist the US Greenback recoup latest draw back.
EUR/USD PRICE CHART & US DOLLAR INDEX OVERLAID: DAILY TIME FRAME (27 APR TO 21 AUG 2020)
Chart created by @RichDvorakFX with TradingView
US Greenback rebound potential can be in consideration of a reversal from the July PMI narrative. FX merchants might look to press key pivot factors going ahead with a deal with present month-to-date highs and month-to-date lows for the DXY Index as EUR/USD builds a spread.
— Written by Wealthy Dvorak, Analyst for DailyFX.com
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