EUR/USD falls slightly amid mixed PMI

EUR / USD fell slightly on Friday reversing many of the gains in one session earlier, amid mixed data on both continents.

The currency pair traded inside a tight range between 1. 0925 and 1. 0996 before settling at 1. 0976, down 0. 0009 or 0. 08%. To the week the euro gained greater than 1. 3% against its American counterpart, like the Greek Debt Crisis continues to wind down.

EUR / USD likely gained support at 1. 0808 the low from July 20 and was met with resistance at 1. 1198, the high from July 13.


The dollar surged to intraday highs in U. S. morning trading amid positive manufacturing data before paring many of the gains following the discharge of disappointing housing figures. The Markit July PMI index inside the U. S. ticked as much as 53. 8, above last month's reading of 53. 4. Shortly later, however, the dollar moved lower following the U. S. Commerce Department said new home sales plunged 6. 8% in June to 482, 000. Median home prices remained soft at $281, 000.

Elsewhere, U. S. 2016 presidential candidate Hillary Clinton proposed a wave of corporate tax reforms on Friday, including a plan that could nearly double the capital gains tax rate on short-term investments. Clinton, the Democratic Party frontrunner, is likewise proposing increased transparency for stock buybacks and changes to executive compensation.

In Europe, the Markit flash euro zone PMI fell to 53. 7 in July, down given by a four-year high of 54. 2 in June. The decline reflected a slowdown inside the manufacturing and service sectors through the entire zone, in addition to a dip in consumer confidence.

Currency traders await next week's Federal Open Market Committee meeting for further hints upon the timing of the much-awaited interest rate hike coming from the Federal Reserve. Earlier soon, Federal St. Louis president James Bullard said there‘s a 50% chance the Fed will raise rates at its FOMC meeting in September. It came days after Fed chair Janet Yellen reiterated that conditions inside the economy are prone to justify an interest rate hike at some point in 2012. Nearly ten years has transpired because the U. S. central bank last lifted its benchmark Federal Funds Rate. For nearly six years, short-term rates of interest have remained level between zero and 0. 25% since finished from the Financial Crisis.

On Friday, the Fed announced it inadvertently published a staff forecast on its website which disclosed that staff economists anticipate a quarter-point rate hike at some point this year
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USD / CAD reached a brand new 12-year high at 1. 3102 before falling slightly to 1. 3047.