EURO STAYS SUPPORTED ABOVE $1.07 MARK

Published on May 02, 2024 17:07

Euro is staying supported above $1.07 mark on Thursday. The Federal Reserve staying less hawkish on interest rates caps downside for the EURUSD pair. Fed left interest rates steady and ruled out the possibility of another rate hike. However, the committee does not expect it will be appropriate to reduce the target range until it has gained greater confidence that inflation is moving sustainably toward 2 percent. Currently, the pair is quoting at $1.0721, down 0.28% on the day as dollar index is slightly up at 105.63 although DXY is off a near six month high attained during intraday moves in the previous session. On the domestic docket, Eurozone Manufacturing PMI, a monthly measure of the overall health of eurozone factories and compiled by S&P Global, posted in sub-50.0 contraction territory for a twenty-second consecutive month in April. At 45.7, down from 46.1 in March, the headline figure signalled a slightly faster rate of deterioration in euro area manufacturing business conditions. German Manufacturing PMI also remained firmly in sub-50 contraction territory in April. At 42.5, its latest reading was up from March`s 41.9, but still below the average recorded (44.0) since the current downturn in business conditions began in mid-2022.