- The US dollar falls after preliminary data from the S&P Global PMI for August.
- Eurozone consumer confidence unexpectedly rises in August.
- EUR/USD has the best day in two weeks.
The sharp decline in the US dollar overall boosted the pair EUR/USD after the publication of economic data from the United States. The pair rose from below 0.9950 to 1.0018, posting a fresh daily high. It then went back and, at the time of writing, is around 1,0000.
US PMIs sound the alarms
The preliminary global PMI for August showed figures below expectations and activity at the lowest level in almost two years. The USD fell broadly after the report. DXY is down 0.70% to 108.20 after testing multi-year highs.
US Treasuries rallied after the figures. Yields on 10-year US bonds plummeted from 3.07% to 2.97% in a few minutes, while 30-year Treasury yields dropped from weekly highs of 3.28% to 3.20%. Movements in the bond market boosted the Japanese yen, which became the best performing currency among the majors.
Early Tuesday, European PMIs showed mixed numbers. More recently, during the American session, the European Commission announced that the Eurozone Consumer Confidence Indicator rose to -24.9 in August, from July’s record low of -27, against expectations of a drop to -28.
The euro maintains significant daily gains against the dollar, rising for the first time after falling for three consecutive days. The main trend of the EUR/USD remains down. The pair rises almost 60 pips, the biggest daily gain in two weeks.
Technical levels
Source: Fx Street
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