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EUR/USD Drops on ISM Manufacturing PMI, Brexit Worries

February 3, 2020 by

EUR/USD declined today as the manufacturing index from the Institute for Supply Management beat expectations, boosting the US dollar. Meanwhile, Brexit worries returned after comments from Britain’s Prime Minister, dragging the euro down.

Markit manufacturing PMI slipped to 51.9 in January from 52.4 in December according to the final estimate. Market participants were expecting the same 51.7 reading as in the flash estimate. (Event A on the chart.)

ISM manufacturing PMI jumped sharply to 50.9% in January from the seasonally adjusted December reading of 47.8%. That was a far better reading that the figure of 48.5% promised by the median forecast. (Event B on the chart.)

Construction spending fell by 0.2% in December from November. That is compared with the predicted increase of 0.5% and a rise of 0.7% registered in November. (Event B on the chart.)

If you have any comments on the recent EUR/USD action, please reply using the form below.

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