The EUR/USD pair rose by 0.18% to 1.0480 during Monday’s early Asian session. This upward movement was influenced by the weaker-than-expected US February PMI data and the results of the German elections, where the conservatives secured victory and the AfD party unexpectedly claimed second place.
The EUR/USD pair saw buying interest around 1.0480 early in the Asian session on Monday, with the Euro rising as Germany’s conservatives secured an expected election victory. Exit polls indicated that the CDU/CSU, led by Friedrich Merz, won the largest vote share, positioning Merz as the likely next chancellor. Focus has now shifted to the timeline for forming a coalition government and implementing reforms to address the struggling economy.
The US Dollar weakened due to lackluster economic data, with the S&P Global Composite PMI falling to a 17-month low in February. While the Manufacturing PMI rose, the Services PMI declined, indicating a slowdown in the services sector.
Concerns about the US economy and potential tariff threats from President Trump weighed on global markets, which could potentially boost the US Dollar and create headwinds for the EUR/USD pair.