Search ForexCrunch

This means that the services sector is growing at a slower pace. Early expectations stood on a rise from 52.9 to 53.6 points. The services sector is the largest in the US.

Also US Factory Orders disappointed with a drop of 0.4%. A rise of 0.2% was predicted. This breaks the nice stream of positive US indicators.

But, it’s important to note that the US is still growing according to the purchasing managers’ indices, while the euro-zone is in contraction zone for quite some time. China is sliding gradually into contraction, and Britain sees growth in services while manufacturing contracts.

The US manufacturing sector grew for the 28th month in a row, as reported last week. ISM Manufacturing PMI surprised by rising from 50.8 to 52.7 points, above expectations for a rise to 51.6 points.

Currencies are still moving mostly by the headlines from the European crisis. Merkel and Sarkozy announced that they have made progress, yet this is still to be seen at the European summit on Friday.

For more on the euro, see the EUR/USD forecast.