On the second trading day of the week, the Dollar made a strong start and the dollar index rose above 101.40. The US 10-year lows are above 2.40%, and the Fed’s hawkish tiebreaking sent the EURUSD below 1.0550 as the dollar appreciates.
If we look briefly at PMI data from Europe today:
- While manufacturing PMI from France fell below expectations with 52.3, services came in above expectations with a PMI of 56.7.
- Manufacturing PMI in Germany was better than expected at 57.0, while services PMI was better than expected at 54.4.
- In the Eurozone, manufacturing PMI came in at 55.5, while services PMI came in at 55.6.
In the PMI data, 50.0 points to growth in the sector, while the data below shows a signal of contraction. Thus, we can say that the data announced is positive for the Euro, but in the French Presidential election polls, the recent extreme right-wing Le Pen, which is anti-EU, has put pressure on the euro. Of course, let’s put it in brackets that the French elections take place in two rounds and according to recent polls, Le Pen is only in the first round.
If the EURUSD moves downward, the first significant level is 1.0520. The decline may continue to 1.0450 and 1.0400 after passing through these places. We recommend that 1.0580 and 1.0650 resistors be taken into account when recovering.