Forex Blog

EUR/USD demonstrated a strong rally today, erasing yesterday’s losses (the currency pair ended Monday below the opening level despite the intraday rally). The signs of economic recovery across the world put markets into the risk-on mode, helping the pair. Additionally, markets expect that Joe Biden will push for additional stimulus after he takes the presidential seat, and that puts pressure on the dollar. Today’s macroeconomic reports in the United States were good overall but that did not help the greenback.

Markit manufacturing PMI climbed from 53.4 in October to 56.7 in November according to the final estimate. The value was unchanged from the preliminary estimate and matched the consensus forecast. (Event A on the chart.)

ISM manufacturing PMI fell from 59.3% in October to 57.5% in November, below the forecast level of 57.9%. (Event B on the chart.)

Construction spending increased by 1.3% in October from September, exceeding the median forecast of a 0.8% increase. The September reading got a significant negative revision from an increase of 0.3% to a drop of 0.5%. (Event B on the chart.)

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