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The US Philly Fed Manufacturing Index for July surprised by rising to 19.8 points. It was expected to slide from the relatively strong 12.5 figure published last month to 8.5 this time. This is the highest figure since March 2011. Also the employment component is high: it moved from -5.4 to +7.7 points.

EUR/USD stabilized above 1.3080 and USD/JPY was at 100.20 prior to the release. The yen is retreating after the release, while the euro remains strong.

This is a very early figure that is often correlated with the ISM Manufacturing PMI released after the month ends. However, manufacturing is only a small part of the US economy.

Fed Chairman Ben Bernanke resumes his testimony in Congress. In the first part, yesterday, Bernanke didn’t say anything really new.

Further reading:  Read Bernanke’s lips – EUR/USD Technical Outlook July 18