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Dollar Gains on Euro amid Brexit Fears

February 22, 2016 by

The only report released from the United States was the Markit manufacturing PMI, and it was not good at all. Yet it did not prevent the dollar from gaining on the euro as manufacturing data released from the eurozone today was also weak for the most part. But the most important factor hurting the euro were fears of the possible exit of Great Britain from the European Union.

Flash Markit manufacturing PMI dropped from 52.4 in January to 51.0 in February while analysts had expected the index to stay little changed. It was the weakest performance of the sector in over three years. (Event A on the chart.)

On Friday, a report on CPI was released, showing no change in January. Experts had predicted the same 0.1% drop as in December. (Not shown on the chart.)

EUR/USD as of 2016-02-22

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