The US Dollar eases as the Euro’s recovery weighs on the Greenback.
Surprisingly upbeat PMI data from France, Germany and the Eurozone trigger substantial strength in the Euro.
The US Dollar Index eases and snaps below 106.00.
The US Dollar (USD) eases on Tuesday as the Euro rallies across the board. The move came on the back of a triple whammy in Eurozone data, with the preliminary Services component in the Purchasing Managers Index (PMI) for Germany, France and the Eurozone beating estimates and even climbing above 50, which means that the sector is no longer in contraction. This positive news for the Eurozone triggered an ample amount of Euro-strength and dragged the Dollar Index (DXY) lower, as the Euro conforms to 57.6% of the basket’s weight.
On the economic data front, the S&P Global Purchasing Managers Index (PMI) data for the US will be released on Tuesday, which will likely be another market-moving event for the Greenback. Traders will want to see if this US Dollar exceptionalism, mainly driven by the strength of the US economy, is still ongoing and is not yet slowing down.
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