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EUR/USD eyed near key moving averages ahead of US ISM Services PMI
Consensus calls for the US ISM Services PMI to tick up to 54.5 from June’s 54, while FXStreet warns EUR/USD could retest 1.1491 or drop toward 1.1386 if the data disappoints.
FXStreet is looking to Wednesday’s US ISM Services Purchasing Managers Index release for clues on the US economy and the dollar, with consensus expecting a marginal rise to 54.5 from June’s 54.
The preview notes that recent June details were mixed, with hiring momentum improving as the ISM Employment Index rose to 51.2, while New Orders eased to 55.1, suggesting demand may be cooling. It also flags weaker inflation pressure in the index, with the Prices Paid Index falling to 67.7.
Against that backdrop, the outlet says the broader macro context remains a key risk for dollar sentiment, pointing to still-hot US inflation. It cites a recent PCE update showing core PCE up 3.3% year over year in June, and headline PCE up 3.7%, versus the Federal Reserve’s 2% target.
FXStreet adds that an ISM print in line with expectations may not move the US Dollar much, but a softer result could shift investor positioning and weigh on USD holdings. The firm highlights a technical level for EUR/USD, saying renewed selling pressure could first target the provisional 55-day SMA at 1.1491, with a break opening the way for a move toward the July floor at 1.1386, while strength could instead push the pair back toward 1.1558.
Latest closeEUR/USD 1.153 ▼0.1%