The pair is now up 0.6% to 1.0880 levels as buyers will have more confidence in the break of the 200-day moving average (blue line) of 1.0827 now. The French PMI data came in with beats across the board, which is a welcome development for the ECB.
EUR/USD daily chart
The central bank can now have more faith in stalling markets and working an angle for a rate cut in June. The odds of an April rate cut are now seen at ~43% after the data.
Going back to EUR/USD, the pair is not only breaking its 200-day moving average today. The 38.2 Fib retracement level of the swing lower this year, seen at 1.0864, is also giving way at the moment. Offers near 1.0900 are going to be the next key test for buyers before getting to the 50.0 Fib retracement level at 1.0917.
We could see the former come into play at least if risk sentiment continues to stay more upbeat and if we do get a German PMI beat as well at the bottom of the hour.