Euro gains ahead of Eurozone PMI data

Daily Currency Update

Some ranged movement has been seen across most currencies with momentum building in certain currencies across the board. The US Dollar index is seen to be potentially weaker in the current climate. While the Euro has gained again slightly against the US Dollar from Wednesday's losses. Markets view the Euro could well test 1.0950 -1.1000 in the near term however may not have enough interest to keep it there. The Euro holds the momentum gained in the Asian session against the US Dollar and Pound Sterling, ahead of the eurozone PMI data due for release and the minutes of the European Central Bank later.  

The US Treasury yields have been hovering around crucial support levels. Whilst the German yields also remain lower with room to fall further from here and test their support level, it’s viewed however a fresh rise in the German Yields could be possible. The 10-year is looking vulnerable to drop further while the 5-year GOI looks mixed, and range-bound.

Inflation in the Eurozone has declined more than forecast in recent months, raising investor expectations that the European Central Bank will cut the rate soon. However, European Central Bank President Christine Lagarde said on Tuesday that the central bank has time to assess how inflation develops after a record streak of rate hikes. The conversation regarding rate cuts is too early, keeping EUR/USD volatile.