The EUR/USD Regained Its Pace Following the PMI Survey

pmi survey

The S&P global Eurozone PMI recorded improvement and is back above 50 no-change level. The return of growth output comes as optimism. EUR/USD currency pair rebounded after experiencing a sudden drop. The European Central Bank expressed concerns over inflation and the president also reaffirmed interest rate hikes.

On the other side of the argument, Economic data released on Wednesday revealed that GDP growth is predicted to increase and inflation is expected to decrease. Despite the German economy minister stating there are no indications of a recession, investors were not swayed by this statement. The upcoming policy announcement from the Bank of Canada may have an impact on the EUR/USD exchange rate, as a hawkish stance is likely to decrease the Euro and strengthen the US Dollar. However, if the Bank of Canada decides to keep their policy rate unchanged, it may weaken the US Dollar.

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