EUR/USD is going to the upside today as the news from Europe was positive and economists say that the recent losses counted on much worse economic situation. The stress test of Spanish banks revealed that the capital deficit of banks was smaller than previously estimated. The euro was rallying amid the good news, experienced a small pullback in the middle of the trading session, but quickly resumed its upside move.

ISM manufacturing PMI was at 51.5% in September, comfortably above the neutral 50.0% level. Market expectations put the index below that level at 49.8%, not far from the previous reading of 49.6%. (Event A on the chart.)

Construction spending slid 0.6% (seasonally adjusted) in August from July. That was a surprise and very negative one as traders expected increase by the same rate. The July figure received a positive revision from -0.9% to -0.4%. (Event A on the chart.)

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