Euro Rebounds Despite Disappointing PMI Data
The EUR/USD currency pair managed to pare previous losses and is now trading steadily around 1.1645 during the European session. Improved market sentiment has weakened the safe-haven US dollar, providing some support for the euro, despite lower-than-expected Eurozone Services PMI data.
The latest data showed that service sector activity in the eurozone stood at just 50.7 in August, down from the initial estimate and also from July's four-month high. However, its impact on the euro was relatively limited as other factors were more dominant in the market.
Previously, the euro had been under pressure due to rising debt concerns, which drove up global bond yields. In Europe, the yield on the 30-year German bond rose 10 basis points in the past three days, while the long-term French yield reached 4.50%, its highest level since 2009, amid domestic political uncertainty.
Meanwhile, the US dollar received support from risk-averse markets, despite disappointing US ISM Manufacturing data. The data shows that US manufacturing activity continued to contract for the sixth consecutive month in August, adding to signs of weakness in the US industrial sector. (ayu)
Source: Newsmaker.id
