The euro has had a positive day today due to a positive Markit PMI Composite and Markit services PMI for February. The results came in just above expectations at 53 and 53.30. The PMI composite measures the economic conditions of the manufacturing and services industries, the results came in above 50 which shows growth within these industries.
The US markets are the focus of today with their PMI composite coming in at 50 which shows no growth in the manufacturing and services industry in February. Initial Jobless claims were expected to fall from 272 to 271, however, they rose to 278. The US data released today also spurred doubt in investors mind with the ISM non-manufacturing PMI decreasing in February which implies a deflation, which is not the news bulls wanted to hear in regards to the possible rate hike. Unit labour costs dropped a fair amount from 4.5% to 3.3% in October which suggests the hourly rate in the US is decreasing which suggests that an increase in interest rates would not be justified this year. This news had weighed in on the USD.
The EUR/USD is looking to restore some of its loses as it claws backs some of the losses made in the weeks prior.