The euro fell against the US dollar following the release of preliminary Eurozone Purchasing Managers' Index (PMI) figures. The EUR/USD exchange rate at the time of reporting was 1.067.
A year ago, the euro was worth $1.100. Analysts believe that a weaker-than-expected manufacturing PMI from Hamburg Commercial Bank (HCOB) contributed to the euro's weakness.
HCOB Manufacturing PMI was lower than expected at 45.6, down from 46.5 in March 2024. The latest index also fell below the standard 50 points.
However, the euro area HCOB composite PMI exceeded this target, coming in at 51.4, higher than the expected 50.8 and March's 50.3. The rise was supported by the HCOB Services PMI, which rose to 52.9 in April 2024, according to the data.
Subscribe to LeapRate's newsletter to never miss the latest news
The US S&P Global PMI could further influence this forex pair. Analysts expect the manufacturing PMI to rise to 52.0 from 51.9 and the services PMI to 52.0 from 51.7. Values above 50 indicate growth, and values below this average indicate decline.
If the US PMI is better than expected, the US dollar could rise further. Experts are keeping a close eye on U.S. services PMI as persistent inflation impacts this market and interest rates remain higher than in Europe.
Rising interest rates mean large capital inflows, so long-term borrowing costs have reportedly helped the US dollar recover to some extent. On April 16, 2024, EUR/USD hit a significant low of 1.0601, reaching a bearish hurdle.
