EUR/USD rallies remain limited despite upbeat Eurozone PMIs
EUR/USD remains trading within previous ranges, unable to find acceptance above 1.1620, despite the upbeat German and Eurozone business activity figures released earlier on Friday. The pair changes hands at 1.1615, at the time of writing, barely changed on daily charts, with all eyes on the US Consumer Price Index (CPI) release, due later on the day.
Eurozone's HCOB Purchasing Managers Index (PMI) data revealed an unexpected expansion of the manufacturing sector's activity in October and a stronger-than-expected growth in the Services sector, which has shown the strongest activity in the last 12 months. These figures improve the outlook of the Eurozone's economy and endorse the European Central Bank's (ECB) hawkish side, dampening hopes of further monetary easing in the coming months.
The common currency, however, has remained on the back foot this week as US President Donald Trump soured market sentiment, threatening new restrictions on software exports to China on Thursday, ahead of next week's meeting with Chinese President Xi Jinping.
Trade issues remain in the spotlight on Friday, as President Trump revived frictions, this time with Canada, publishing a post on social media assuring that trade negotiations with his northern neighbour have "terminated", apparently due to an advert that featured former US president Ronald Reagan speaking negatively about tariffs.
Source: fxstreet
