24 Feb 2016
EUR/USD: volatility persists - FXStreet
Ani Salama, economist at FXStreet, explained the conditions surrounding EUR/USD in the US shift as a prelude to Asia.
Key Quotes:
"After hitting fresh highs versus the euro and the pound during the European session, the US dollar gave up most of its early gains as it took a hit from disappointing economic data. US Markit services PMI fell to 49.8 in February, below the 53.5 expected while the composite PMI also fell to 50.1 from 53.2 in January. Meanwhile, new home sales dropped by 9.2% in January, much more than the expected fall of 4.4%.
EUR/USD bounced from a 3-week low of 1.0957 and regained the 1.1000 level, erasing almost completely intraday losses. However, the pair lacked momentum to extend the recovery beyond the 1.1025 zone and settled just below that level.
Key Quotes:
"After hitting fresh highs versus the euro and the pound during the European session, the US dollar gave up most of its early gains as it took a hit from disappointing economic data. US Markit services PMI fell to 49.8 in February, below the 53.5 expected while the composite PMI also fell to 50.1 from 53.2 in January. Meanwhile, new home sales dropped by 9.2% in January, much more than the expected fall of 4.4%.
EUR/USD bounced from a 3-week low of 1.0957 and regained the 1.1000 level, erasing almost completely intraday losses. However, the pair lacked momentum to extend the recovery beyond the 1.1025 zone and settled just below that level.