EUR/USD, GBP/USD, USD/CAD, USD/JPY – U.S. Dollar Remains Under Pressure After PMI Reports
- U.S. Dollar Index tries to settle below the 102 level.
- EUR/USD tested the 1.0900 level as traders bet on a less hawkish Fed.
- USD/JPY pulled back below 132.50 as Treasury yields declined.
U.S. dollar remains under pressure after the release of S&P 500 Global Manufacturing PMI and ISM Manufacturing PMI reports. The reports missed analyst expectations and showed that manufacturing sector remained under pressure.
Treasury yields are moving lower as traders bet that the Fed will be forced to cut rates in 2023, which is bearish for the American currency. However, it should be noted that the U.S. Dollar Index gets strong support near the 102 level.
EUR/USD continues its attempts to settle above the 1.0900 level. Today, traders focused on the final reading of the Euro Area Manufacturing PMI report, which showed that Euro Area Manufacturing PMI decreased from 48.5 in February to 47.3 in March, compared to analyst consensus of 47.1. The better-than-expected report provided additional support to EUR/USD.
GBP/USD tested the 1.2400 level as the U.S. dollar remained under pressure against a broad basket of currencies. UK Manufacturing PMI declined from 49.3 to 47.9, compared to analyst consensus of 48. Traders have mostly ignored the report and focused on the general weakness of the U.S. dollar.
USD/CAD is trying to settle below the 1.3450 level as oil markets rally after OPEC’s decision to cut production. Other commodity-related currencies have also managed to gain upside momentum in today’s trading session. AUD/USD rallied above the 0.6750 level, while NZD/USD made an attempt to settle above 0.6300.
USD/JPY pulled back below the 132.50 level as traders focused on the pullback in Treasury yields. Currently, the yield of 10-year Treasuries is trying to settle below the 3.40% level. In case this attempt is successful, it will move towards the recent lows at 3.30%, which will be bearish for USD/JPY.
For a look at all of today’s economic events, check out our economic calendar.