EURO PULLS BACK AGAINST DOLLAR AFTER DISMAL PMI DATA; EURINR FUTURES OFF INTRADAY HIGHS ABOVE 91 MARK

Published on Dec 15, 2023 15:24

Euro pulled back against the dollar following a sharp rally since late yesterday as the European Central Bank (ECB) kept rates unchanged and sounded hawkish on interest rates for next year. Moreover, ECB policymaker Madis Muller stated Friday that it is �too early to talk about rate cuts in the near term.� EURUSD jumped above $1.10 following the policy outcome but shed some gains today to be currently quoting at $1.1003, down 0.30% on the day. The downturn came on the back on weaker than expected German and Euro zone PMI. Eurozone Manufacturing Purchasing Managers Index (PMI) arrived at 44.2 in December matching the 44.2 registered in November while the bloc�s Services PMI dropped to 48.1 in December from 48.7 in November, hitting a two-month low and missing the 49.0 forecast. Germany�s Manufacturing PMI rose to 43.1 in December as expected but services PMI dropped to 48.4 in December vs. 49.6 expected. On the NSE, EURINR futures turned lower after hitting the day�s high of 91.69. Currently, the pair is trading at 90.95, marginally lower on the day.