EUR/USD plunges back into familiar consolidation levels on Thursday after short-lived rally

• The Euro’s Fed-fueled rise against the Greenback proved short-lived.
• Fed tips hat to future rate cuts, US Dollar selloff proves temporary.
• European Manufacturing PMI slips, US Services PMI contracts.

The EUR/USD drove headfirst back into familiar territory on Thursday, wit the pair falling three-quarters of a percent through the day to end near 1.0850. Wednesday’s Fed-fueled rally proved to be a whipsaw rather than a break of character for the markets, and the Fiber is pinned firmly back into familiar near-term consolidation territory. 

The Euro (EUR) quickly backpedaled in early Thursday trading after European Purchasing Managers Index (PMI) figures for the European continent shook investors awake. As the economic powerhouse of the European Union, Germany’s mixed PMI prints splashed cold water on Euro bidders, with the German March Manufacturing PMI sliding to a five-month low of 41.6 as business activity confidence continues to wither. Germany’s Manufacturing component was expected to tick upwards to 43.1 from 42.5, and the downside print drowned out an uptick in Germany’s Services PMI component, which printed above expectations at 49.8, beating the forecast 49.8 and inches closer towards positive 50.0 territory after last month’s 48.3.