EUR/USD consolidates near 1.1800 after touching 1.1830,dogecoin the highest level since September 2021
US manufacturing sector shows signs of recovery with ISM PMI climbing to 49.0 in June
Eurozone inflation remains stable at ECB's 2% target, while trade negotiations between EU and US continue
The EUR/USD pair demonstrates notable stability around the 1.1800 psychological level during Wednesday's Asian trading session, following its recent ascent to multi-year peaks. Market observers note the currency pair's modest retreat from Tuesday's high of 1.1830 coincides with a slight recovery in the US Dollar's valuation across global markets.
The US Dollar Index (DXY), which tracks the greenback's performance against a basket of major currencies, appears to be finding support near 96.70 after experiencing consistent declines since mid-June. This stabilization comes as fresh economic indicators suggest the US manufacturing sector may be showing early signs of rebounding from recent challenges.
June's ISM Manufacturing Purchasing Managers' Index (PMI) surprised market participants by rising to 49.0, exceeding both the previous month's 48.5 reading and consensus estimates of 48.8. Additional positive data emerged from the labor market, with May's JOLTS Job Openings expanding to 7.76 million positions, significantly surpassing April's 7.395 million and market projections of 7.3 million. These developments have shifted attention toward the upcoming ADP Employment Change report for further labor market insights.
Federal Reserve Chair Jerome Powell maintained a cautious stance during recent remarks, emphasizing the need for additional economic data before considering policy adjustments. While not precluding potential rate reductions, Powell's comments suggested the central bank remains data-dependent in its decision-making process. Concurrently, Treasury officials have indicated expectations for monetary policy easing before autumn, though precise timing remains uncertain.
Across the Atlantic, preliminary Eurozone inflation figures matched expectations at 2%, maintaining alignment with the European Central Bank's target range. ECB Chief Economist Philip Lane reinforced market perceptions that the institution's recent tightening cycle has concluded, though future policy directions remain contingent on economic developments.
Trade dynamics between the European Union and United States continue to evolve, with reports suggesting Brussels may accept a proposed 10% universal tariff framework while seeking exemptions for strategic industries. High-level discussions between EU Commissioner Maros Sefcovic and US trade officials aim to advance negotiations covering critical sectors including pharmaceuticals, aerospace, and semiconductor technologies.
