EURUSD retreated; the “greenback” is in demand.
The major currency pair dropped on Tuesday. The current quote for the instrument is 1.1327.
The demand for “safe haven” assets revived and the “greenback” rose to the occasion. As long as risk aversion dominates the global market, the American currency will continue strengthening.
The statistics published yesterday showed that the Manufacturing PMI in the Euro Area dropped to 58.4 points in February after being 58.7 points the month before. The Services PMI went from 51.1 points to 55.8 points over the same period.
In Germany, the Manufacturing PMI reduced to 58.5 points in February after being 59.8 points in January. As for the Services PMI, it rose to 56.6 points against 52.2 points in the previous month.
As a result, the overall picture is quite clear: manufacturing enterprises become less active due to bloated prices for energies, which lead to bigger expenses. On the other hand, the services industry is getting back to normal after the removal of quarantine restrictions.
Later today, market players will wait for the Conference Board Consumer Confidence in the US for February, which is expected to plunge.
However, the key thing to be watched is geopolitics and global responses to it.