EUR/USD reverses its earlier gains on Friday as the US Dollar (USD) steadies after retesting the three-month low touched the previous day.
At the time of writing, the pair trades around 1.1677, easing from an intraday high of 1.1711, its highest level since May 14
Traders also digest preliminary S&P Global Purchasing Managers’ Index (PMI) data showing that US business activity remained in expansion in August. The Composite PMI rose to a 52-month high of 56.0 from 54.5, while the Services PMI climbed to a 20-month high of 56.8 from 54.6. The Manufacturing PMI eased to a five-month low of 53.2 from 53.9.
The US Dollar Index (DXY), which tracks the Greenback’s value against a basket of six major currencies, trades around 98.82, recovering from an intraday low of 98.56. Despite the intraday pullback, EUR/USD remains on track for a fourth consecutive weekly gain as the broader macroeconomic backdrop leans against the Greenback. The US Dollar came under heavy selling pressure earlier this week after the US Treasury announced that it would double its liquidity-support buybacks for longer-dated government securities.