Euro Falls Against the Strong Dollar Despite Upbeat Eurozone PMIs

The euro today fell against the US dollar on the first trading day of 2020 as the greenback started the year on a strong footing and rallied higher. The EUR/USD currency pair today fell from the multi-month highs hit on December 31st despite the release of mostly upbeat euro area PMI reports by Markit Economics.
The  EUR/USD currency pair today fell from an  opening high of  1.1222 to  a  low of  1.1170 in  the  early American session and  was near these lows at  the  time of  writing.
The  pair fell today reversing a  4-day rally that saw it end the  year trading at  4-month highs. The  pair’s decline coincided with the  greenback’s rally as  tracked by  the  US Dollar Index, which hit a  high of  96.84 earlier today. The  release of  the  upbeat Markit/BME Germany Manufacturing PMI, which came in  at  43.7 beating consensus estimates set at  43.4 gave the  pair a  breather. The  upbeat Markit Spain Manufacturing PMI also triggered a  brief pause in  the  pair’s decline as  did the  positive Markit Eurozone Manufacturing PMI. The  manufacturing PMI print from France was also positive with Italy’s manufacturing PMI being the  only one that missed expectations by  a  slight margin.
The  currency pair recovered at  the  time of  writing after the  release of  weak Markit US Manufacturing PMI, which came in at 52.4 missing expectations by 0.26. The upbeat US initial jobless claims data could not stop the  greenback’s fall.
The  currency pair’s future performance is likely to  be affected by  tomorrow’s multiple European and  US releases.
The  EUR/USD currency pair was trading at  1.1188 as  at  16:14 GMT having fallen from a  high of  1.1222. The  EUR/JPY currency pair was trading at  121.20 having dropped from a  high of  122.01.

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