- The EUR/USD is seeing bids in a broad-market risk rally to close out the trading week.
- Market sentiment is seeing a late break, pushing bids up the charts in a technical rally.
- US PMI data came in mixed, helping to soften the US Dollar.
The EUR/USD is trading into the 1.0950 level as the trading week winds up and markets are set for an early volume drop-off with US money markets shuttering early for the weekend. US markets are set to close at 13:00 EST this week, and markets are taking one last step into a risk bid before the early bell.
US S&P Global Manufacturing PMI drops to 49.4 in October
US Purchasing Managers’ Index (PMI) data spread on Friday, with a decline in the Manufacturing component and an uptick in the Services figures.
The US Manufacturing PMI backslid into 49.4, missing the market’s forecast of 49.8 and slipping back into contraction territory in November after October’s flat reading of 50.0.
The Services component expanded, printing at 50.8 versus the forecast decline from 50.6 to 50.4, helping to offset the decline in Manufacturing and keeping the Composite PMI figure on-balance at 50.7, matching October’s print.
Market participants will be turning their attention towards next week’s heftier data releases, with US Gross Domestic Product (GDP) and Eurozone Harmonized Index of Consumer Price (HICP) inflation figures, both due in the mid-week.
US QoQ GDP is expected to tick upwards from 4.9% to 5.0% and pan-Eurozone HICP inflation is expected to slow down from 4.2% to 3.9% for the annualized figure.
EUR/USD Technical Outlook
The Euro is grinding higher against the US Dollar heading into Friday’s market close, with the EUR/USD pushing towards 1.0950, but the pair still remains below the week’s peak at 1.0965.
The pair has rallied almost 5% from early October’s bottom at 1.0448, and the pair has climbed three-tenths of a percent on the week. Friday’s late technical rally helped to push the pair back into the green after reaching a weekly low near 1.0850.
EUR/USD Daily Chart
EUR/USD Technical Levels
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