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EUR/USD Loses Gains, Extends Decline After US Manufacturing PMIs

September 1, 2020 by

EUR/USD was moving up today but has reversed its movement at 13:15 GMT and fell below the opening level. Market analysts attempted to explain the reversal by good US manufacturing indicators but the currency pair started its decline before the reports came out.

Markit manufacturing PMI rose 53.1 in August from 50.9 in July according to the revised estimate. Nevertheless, the actual reading missed expectations of analysts, who were counting on the same 51.6 figure as in the preliminary estimate. (Event A on the chart.)

ISM manufacturing PMI climbed to 56.0% in August from 54.2% in July, far above the forecast value of 54.6%. (Event B on the chart.)

Construction spending rose just 0.1% in July from June, whereas market participants were expecting a 1.0% increase. The indicator fell 0.5% the month before. (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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