Euro Update: Weaker US Activity Data Helps the Euro Reclaim Lost Ground

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Euro Update: Weaker US Activity Data Helps the Euro Reclaim Lost Ground
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The euro has found its feet after slower US PMI data and a more dovish message from the Fed resulted in higher moves for both EUR/USD and EUR/CHF

Year on year inflation data for Mach dropped to 2.4% after economists anticipated no change to last month’s 2.6% reading. The ECB will meet again next week Thursday where they are likely to indicate that June presents the favourable time to start cutting interest rates.

In the aftermath of the Swiss National Bank rate cut, the franc remains vulnerable to further depreciation and this surfaces via EUR/. The bullish move continues to mature, after accelerating in February when the prospect of rate cuts started to filer in.

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Euro Jumps as US Dollar Drops on Weaker-than-Expected Services Sector ActivityEuro Jumps as US Dollar Drops on Weaker-than-Expected Services Sector ActivityThe Euro jumps on Wednesday with the US Dollar dropping across the board. The unexpected decline of the US ISM Services PMI has eased concerns about a hawkish turn by the Fed. Earlier on Wednesday Eurozone CPI reflected softer-than-expected price pressures in March. The Euro is going through a sharp recovery in Wednesday’s US trading session. The pair has rallied about 60 pips following weaker-than-expected US services sector’s activity, which has eased fears of a hawkish steer by the Federal Reserve. Data released by ISM Insitute revealed that business activity in the services sector slowed down to 51.4 in March from 52.6 in the previous month, against expectations of a slight acceleration to 52.7. Beyond that, the Prices Paid sub-index has dropped to 53.4 from 58.6 in February and 64 in January confirming the disinflationary trend in the sector
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