The US manufacturing sector continues growing nicely according to the ISM Manufacturing purchasing managers’ index. The figure rose to 54.2 points. Early expectations stood on a small slide from 53.1 to 52.8 points.
EUR/USD traded at 1.2988 before the publication. GBP/USD managed to escape 1.50. Will both pairs plunge now that the main data releases are behind us? Update: Yes. EUR/USD is now at 1.2970 and GBP/USD at 1.4985.
More economic data:
- The new orders component rose from 53.3 to 57.8. This is the highest level since April 2011.
- However, the unemployment component slipped from 54 to 52.6 points. It’s important to note that all figures above 50 indicate growth.
- Earlier, Markit’s final number for the manufacturing PMI stood on 54.3, lower than the early call of 55.2. No revision was expected.
- US Construction Spending fell by 2.1%, much worse than a rise of 0.6% that was predicted.
- The University of Michigan’s consumer confidence index rose to 77.6 from 76.3, above expectations.
EUR/USD already dropped below 1.30 earlier, following a wide range of disappointments, especially from Italy. GBP/USD fell towards 1.50 following a terrible manufacturing PMI.
Update: EUR/USD touches support at 1.2960 and doesn’t follow through for now.
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