EUR/USD REBOUNDS INTO RANGE AFTER US ISM PMI MISS SPARKS RISK-ON FRIDAY

• EUR/USD vaults back into 1.0840 following market pivot.
• Market risk sentiment sees a late-week recovery on Friday.
• US Manufacturing PMI unexpectedly declines, sparking rate cut hopes.

EUR/USD caught a bounce from 1.0800 after markets pivoted into a risk-on stance following Friday’s US ISM Manufacturing Purchasing Managers Index (PMI) declined, flubbing forecasts and stepping deeper into contraction territory. Slipping economic figures are sparking renewed hopes of Federal Reserve (Fed) rate cuts.

Meanwhile, the Fed’s latest Monetary Policy Report shows the central bank is firming up faith in inflation reaching the 2% target. The European Harmonized Index of Consumer Prices (HICP) inflation fell less than expected in February, helping to provide some sentiment support for the Euro (EUR) on Friday. 

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