EUR/USD Reverses Gains as US Dollar Steadies

The EUR/USD pair has reversed its earlier gains on Friday as the US Dollar steadies after retesting its three-month low from the previous day. The pair trades around 1.1677, easing from an intraday high of 1.1711, its highest level since May 14.

Traders are digesting preliminary S&P Global Purchasing Managers' Index (PMI) data showing that US business activity remained in expansion in August. The Composite PMI rose to a 52-month high of 56.0 from 54.5, while the Services PMI climbed to a 20-month high of 56.8 from 54.6.

The US Dollar Index (DXY) trades around 98.82, recovering from an intraday low of 98.56. The broader macroeconomic backdrop leans against the Greenback, keeping EUR/USD on track for a fourth consecutive weekly gain.