EUR/USD is trading just shy of the 1.1800 mark in the European session, last seen at 1.1795 after recovering from intraday lows near 1.1785. The Euro found mild support from mixed Eurozone PMI data, though investors remain cautious ahead of key US releases — the flash PMI readings and Fed Chair Jerome Powell’s speech later today.
Eurozone PMI recap
The bloc’s preliminary PMIs for September signaled diverging trends.
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Eurozone Services PMI improved to 51.4 vs. 50.5 expected.
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Eurozone Manufacturing PMI slipped to 49.5 from 50.7, missing forecasts for 50.9.
Germany followed the same pattern, with manufacturing falling to 48.5 against expectations of 50.0, but services strengthening to 52.5 from 49.3.
France, however, disappointed across the board.
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Manufacturing PMI slumped to 48.1 from 50.4.
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Services PMI declined further to 48.9, extending its contraction.
The divergence highlights persistent weakness in the Eurozone’s second-largest economy and raises questions about the region’s recovery momentum.
Focus shifts to US data
Markets now await the US Flash PMIs (13:45 GMT), with manufacturing expected to ease to 52 and services to 53.9. These figures, along with Powell’s speech, will be pivotal ahead of Friday’s PCE inflation data, offering clearer clues on the Fed’s policy path.
The US Dollar has softened after mixed commentary from Fed officials. Newly appointed Governor Stephen Miran argued for rates closer to 2% due to structural changes in immigration, taxation, and tariffs, suggesting policy is too tight. In contrast, St. Louis and Cleveland Fed Presidents Alberto Mussalem and Beth Hammack expressed caution, stressing inflation risks. Despite the divergence, the greenback retained a bearish tone against peers.
EUR/USD technical outlook
The pair’s rebound from the 1.1725 zone remains capped near the 1.1800 level. Momentum has slowed, though RSI stays above 50, indicating underlying bullish bias.
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Support: 1.1730 (trendline), followed by 1.1700 and 1.1660.
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Resistance: 1.1820 (intraday high), 1.1850 (Sept 18 high), and 1.1878 (Sept 16 high).
A break below 1.1730 would open the door for further downside, while sustained strength above 1.1820 could fuel a push toward the 1.1878 barrier.
