Traders took some profits from the yesterday’s strong rally on the EURUSD pair and the single currency was seen marginally lower after the latest PMI numbers.
The German Markit Services PMI rose notably to 56.5 in September, up from 55.0 previously, however, the manufacturing sector decelerated markedly from 55.9 to 53.7. Therefore, the German composite PMI dipped to 55.3 in September from 55.6 in August.
The services index for the euro zone as a whole ticked higher to 54.7 from 54.4 in the previous month, but the manufacturing sector slowed from 54.6 to 53.3. Overall, the composite PMI slid to 54.2 from 54.5 in August. The single currency eased slightly after these numbers.
Later in the day, the US composite PMI is seen rising to 55.0 for the month of September, up from 54.7 previously.
The key support remains at 1.1750 and while the euro trades above, the outlook looks positive, targeting another resistance at 1.1850. On the other hand, following the latest strong rally, we could see a consolidation in the near future. If the pair declines back below 1.1750, the latest bullish momentum would be cancelled and the single currency could decline back toward 1.17 or possibly lower.
Traders might slowly shift their attention to the next week’s FOMC meeting, where the Fed is broadly expected to raise rates again. Should the following statement sound bullish, we could see a strong rally on the US dollar.
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