Euro sits near multi-month top vs weak USD as bulls await move beyond 1.1700 ahead of PMIs
The EUR/USD pair attracts some dip-buyers during the Asian session on Friday and climbs back closer to its highest level since May 14, set the previous day, with bulls now awaiting a move beyond the 1.1700 mark before placing fresh bets.
The EUR/USD currency pair has reached a multi-month high against the weak US dollar, with traders anticipating a move beyond the 1.1700 mark ahead of the release of Purchasing Managers' Index (PMI) data for both the Eurozone and the United States. Despite dips in the pair's price, it remains on track for substantial weekly gains and an ongoing uptrend amid a generally weaker US Dollar.
The EU's gas storage situation and expectations of energy-driven inflation are bolstering the euro, as the European Central Bank may adopt a more hawkish stance. The potential for tighter European electricity prices due to insufficient gas inflows adds pressure on the euro. Meanwhile, the US Treasury Department's plan to double the size of certain long-dated debt buyback operations has seen diminishing initial market impact.
Geopolitical factors, such as the US-Iran standoff, may also contribute to holding back USD bears and limiting losses for the safe-haven greenback. Traders will be monitoring the flash PMI releases from the Eurozone and the US to gain further momentum, while the EUR/USD pair maintains a bullish near-term outlook above key technical support levels.
Written by urgent.news from FXStreet's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
