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Dollar Advances vs. Euro as Manufacturing PMI Plunges

August 1, 2011 by

Despite the improved US real estate data, the dollar went soaring against the euro today, following a worse than expected report from the ISM. The currency pair fell as the global risk appetites decreased on bad US manufacturing sector prospects.

ISM PMI for manufacturing sector was reported at 50.9% in July — down from 55.3% reported for June. The indicator was expected to drop only to 55.0%. (Event A on the chart.)

Construction spending rose by 0.2% in the United States in June, following 0.6% drop in May. A decline of 0.1% was expected from the current report. (Event A on the chart.)

EUR/USD as of 2011-08-01

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