EUR/USD gains ground above 1.0900 on the stronger Eurozone PMI, US PMI data looms
- EUR/USD holds above 1.0900 on the upbeat Eurozone PMI data.
- Eurozone Manufacturing PMI climbed to a six-month high of 43.8 vs. 43.1 prior, Services PMI grew to 48.2 vs. 47.8 prior.
- Traders will closely watch the German GDP Q3, IFO Survey and US S&P Global PMI data.
The EUR/USD pair trades in positive territory above 1.0900 during the early Asian trading hours on Friday. The uptick of the Euro (EUR) is bolstered by the stronger-than-expected Eurozone PMI data. On Friday, market players will shift their attention to the new reading of German Gross Domestic Product for the third quarter (Q3) and US PMI data. At press time, EUR/USD is up 0.03% on the day to trade at 1.0909.
The preliminary Eurozone PMI data for November came in above the market expectation on Thursday. The Eurozone Composite Purchasing Managers’ Index (PMI) rose to 47.1 from 46.5 the previous reading, better than estimation of 46.9. Meanwhile, the Manufacturing PMI climbed to a six-month high of 43.8 versus 43.1 prior and the Services PMI grew to 48.2 from the previous reading of 47.8. In response to the data, the Euro (EUR) gains traction against the US dollar (USD).
Across the pond, the US market was closed on Thursday, and there were no economic data released. The US dollar loses ground as the market players raise the bet that the Federal Reserve (Fed) is done with the hiking cycle and expected rate cut in the middle of 2024. The US PMI data might offer some hints about the economic condition in the US. The Manufacturing PMI is estimated to drop from 50.0 to 49.8, and the Services PMI is expected to fall from 50.6 to 50.4.
Moving on, market participants will monitor the German GDP Q3, the IFO Survey, and ECB President Christine Lagarde's speech on Friday. During the American session, the US S&P Global PMI data will be due. Traders will take cues from these figures and find trading opportunities around the EUR/USD pair.