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Euro slips vs dollar despite stronger Eurozone business activity

EUR/USD traded near 1.1370 as the Dollar Index held near 101.50, with investors looking ahead to the Fed’s July 28 to 29 meeting.

Reported · Written up by our desk · Major Pairs

EUR/USD was lower around the 1.1370 area on Friday, under pressure despite stronger-than-expected Eurozone business-activity data, FXStreet said. The US Dollar Index, or DXY, stayed firmer near 101.50, limiting support for the euro.

Germany’s preliminary HCOB Composite PMI rose to 51.2 in July from 49.5, returning to expansion, while manufacturing climbed to 52.2 from 50.3. Services improved to 49.6 from 48.6 but remained below the 50.0 expansion threshold, and the wider Eurozone composite PMI increased to 51.9 from 50.0, beating forecasts.

In the US, the preliminary S&P Global Manufacturing PMI eased to 53.8 from 54.5 expectations, while services jumped to 53.6 from 51.2, exceeding its 51.0 forecast. FXStreet added that the stronger US services reading may help keep Treasury yields supported and curb a deeper decline in the greenback, even as risk sentiment improved after reports that Pakistan and Iran are exploring renewed US-Iran negotiations under a China-backed initiative.

The next catalyst for EUR/USD is the Federal Reserve’s July 28 to 29 meeting, expected to keep its target range at 3.50% to 3.75%. FXStreet noted that the policy statement and Chair Kevin Warsh’s press conference will be key, since the meeting is not expected to include new economic projections or an updated dot plot.

Latest closeEUR/USD 1.138 ▼0.2%|Dollar index 101.44 ▲0.3%

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