Euro Recovers After Five Losing Sessions

Forex News

The euro had been showing losses versus US dollar for five straight sessions. The EUR/USD pair is trading at 1.1563 level, down 0.12% on the day. Yesterday, the single currency touched a low of $1.1505, its lowest level since mid-August. Still, the euro remains under pressure.

The euro has risen today, after Italy’s new budget plan was announced, which aims to reduce the deficit to 2% by 2021. The European Union was unhappy with the proposed Italian budget, which increases spending, lowers taxes and sets the budget deficit at 2.4% of GDP for 2019.

German and Eurozone services PMIs improved in September. German Services PMI climbed from 55.0 in August to 55.9 in September, missed the forecast of 56.5 points. This reading was the highest level since February. Eurozone Services PMI improved to 54.7, matching the forecast.

Eurozone retail sales unexpectedly fell in August. Today's data showed, that the volume of retail sales in the Eurozone declined by 0.2% mom in August, after a decline of 0.6% in July. Economists had forecast an increase of 0.2% in August. This was the second drop in sales. On an annual basis, retail growth accelerated to 1.8% in August from 1% in July. It was expected that sales in August will grow by 1.7%.