EUR/USD GRINDS TO FLAT AFTER MARKET ABSORBS US PMI MISS

• EUR/USD rotates around 1.0850 once more.
• US data missed expectations, briefly weakening the US Dollar.
• European PMIs broadly beat, but Europe’s PPI missed.

EUR/USD drove into a fresh intraday high of 1.0876 on Tuesday but flopped back to the day’s opening bids after the market readjusted following a worse-than-expected print in the US ISM Services Purchasing Managers Index (PMI).

Europe’s final HCOB Composite PMI for February printed above expectations after finding additional calculation gains over the preliminary print. However, the pan-European Producer Price Index (PPI) failed to recover as markets had expected. Tuesday’s US PMI missed expectations, and markets will be pivoting to keep an eye out for key US labor figures and a two-day appearance from Federal Reserve (Fed) Chair Jerome Powell.