FXStreet (Mumbai) – The EUR/USD pair trades just above 1.09 levels even though the German and Eurozone final PMI readings printed lower-than-expected, while French PMI contracted for the 13th consecutive month.
EUR/USD: prints a low of 1.0902
The pair fell to a low of 1.0902 before recovering to trade at 1.0915 levels after the German PMI for May came-in at 51.1, missing the estimate of 51.47. Meanwhile, the Eurozone PMI printed at 52.2 Vs. the expectation of 52.3. The weaker-than-expected data failed to push the pair below 1.09 levels.
Moreover, the regional inflation gauge released in Germany has been upbeat. The Eurozone PMI also showed input costs rose to 3 year highs in May. Consequently, fresh bids at 1.0902 helped the pair recover to 1.0917 levels. Ahead in the day, the German CPI reading and US personal income and spending report could influence the pair.
EUR/USD Technical Levels
A break below 1.09 could see the pair target 1.0862 levels (May 26 close). On the flip side, a break above 1.0941 (5-DMA) could see the pair re-test 1.0971 (23.6% R of 1.1465-1.0817).
(Market News Provided by FXstreet)