EURO LOOKS TO RECLAIM $1.10 LEVELS; POSITIVE PMI DATA SUPPORTS

Published on Jan 04, 2024 16:49

Euro set its foot on gains for the first time in the New Year on Thursday, thanks to a slight pull back in dollar from its best level in three-weeks. US Fed minutes seemed less certain on timing and quantum of interest rates cuts that boosted benchmark treasury yields and dollar higher. The minutes of the Federal Reserve`s latest monetary policy meeting reiterated officials widely expect to begin lowering rates in 2024, but they also highlighted an "unusually elevated degree of uncertainty" about the outlook. The 10 year US treasury yields climbed above 3.9% while dollar index reclaimed 102 mark. The dollar index that measures the greenback against a basket of currencies is quoting at 102.02, down 0.17% on the day. EURUSD was quoting at $1.0988, just short of reclaiming back $1.10 mark. From the Euro area economic docket, data showed improved Purchasing Managers Index (PMI) from Germany and the Eurozone. German HCOB Composite and Services PMI for December improved to the readings of 47.4 and 49.3, respectively. While Eurozone Composite and Services PMI improved to the figures of 47.6 and 48.8, respectively, for the said month. On the NSE, EURINR futures climbed 0.17% to 91.31.