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EUR\/USD gains after discovering buying interest near the\u00a0key support of 1.1100 in Tuesday\u2019s North American\u00a0session. The major currency pair recovers from\u00a0Monday\u2019s losses, which were triggered after the release of the\u00a0flash HCOB Purchasing Managers Index (PMI) data for September.\u00a0<\/p>\n
The PMI report showed that the business activity unexpectedly sank into contraction, which was estimated to fall slightly but remained above the 50.0 threshold that separates expansion from contraction. Weak data\u00a0weighed heavily on the Euro (EUR) after stoking market expectations for the European Central Bank<\/a> (ECB) to opt for a second straight interest rate cut in the October meeting.<\/p>\n A decline in the HCOB Composite PMI dominantly came from the manufacturing sector, where contraction in activities accelerated at a faster-than-expected pace. The service sector remained on a growth trajectory but at a slower pace than what economists forecasted.<\/p>\n Weakening Eurozone activity prospects would add to obstacles for ECB policymakers in pursuit of stable market conditions who are already worried about price pressures remaining persistent. Last week, ECB Governing Council Member Isabel Schnabel said that sticky services inflation is keeping headline inflation at an elevated level.<\/p>\n In today\u2019s session, President of Deutsche Bundesbank Joachim Nagel is scheduled to give a speech at 16:00 GMT. Nagel is expected to provide fresh cues on the ECB\u2019s likely interest rate action for the remaining year.<\/p>\n <\/a><\/p>\n EUR\/USD rebounds from\u00a01.1100 in North American\u00a0trading hours on Tuesday. The major currency pair finds support near the 20-day Exponential Moving Average (EMA) near 1.1090.<\/p>\n The outlook<\/a> of the major currency pair would remain firm till it holds the breakout of the Rising Channel chart<\/a> pattern formed on a daily time frame near the psychological level of 1.1000.\u00a0<\/p>\n The 14-day Relative Strength Index (RSI) moves lower to 55, suggesting momentum is weakening.<\/p>\nDaily digest market movers: EUR\/USD strengthens\u00a0as investors digest weak Eurozone flash PMI data<\/h2>\n
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Technical Analysis: EUR\/USD bounces back from 20-day EMA<\/h2>\n