EUR dropped to the mid-February lows. Overview for 02.04.2024

The primary currency pair remains under significant pressure on Tuesday. The current EURUSD exchange rate stands at 1.0730.

US statistics released yesterday triggered a substantial strengthening of the USD. The data included the March ISM Manufacturing PMI. The report showed an increase to 50.3 points from 47.8 points the previous month. Firstly, the indicator surpassed the 50-point threshold that distinguishes between decline and growth. Secondly, it halted a 16-month downtrend.

The components of the new release appeared varied. Manufacturing parameters recovered, and the number of new orders increased. However, employment in the sector remains low, and commodity price pressure persists.

According to CME FedWatch, the market has slightly adjusted its expectations regarding the US Fed’s interest rate cut in June.

Today, the market focus is on the March manufacturing PMI in the eurozone and the February manufacturing order report in the US.