EUR/USD recovers sharply from 20-year lows weak US data

• US dollar tumbles following the August preliminary US S&P Global PMI.
• Eurozone consumer confidence rises unexpectedly in August.
• EUR/USD is having the best day in two weeks.

A sharp decline of the US Dollar across the board boosted the EUR/USD pair following the release of US economic data. The pair climbed from under 0.9950 to 1.0018, printing a fresh daily high. It then pulled back, and as of writing, it is hovering around 1.0000.

US PMIs trigger alarms

The August preliminary S&P Global PMI showed numbers below expectations and activity at the lowest level in almost two years. The greenback tumbled across the board after the report. The DXY is falling by 0.70%, at 108.20, after testing multi-year highs.

US Treasuries rallied after the numbers. The US 10-year yield collapsed from 3.07% to 2.97% in a few minutes while the 30-year dropped from weekly highs at 3.28% to 3.20%. The moves in the bond market boosted the Japanese yen which become the best performer among majors.

Earlier on Tuesday, European PMI showed mixed numbers. More recently, during the American session, the European Commission announced that the Consumer Confidence Indicator for the Eurozone rose to -24.9 in August from July's record low of -27, against expectations of a decline to -28.

The euro is holding onto important daily gains versus the dollar, up for the first time after falling for three consecutive days. The main trend in EUR/USD is still bearish. The pair is up by almost 60 pips, the biggest daily gain in two weeks.

Technical levels