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EUR/USD Rises, Extends Rally After Manufacturing & Construction Spending Data

December 2, 2019 by

EUR/USD rallied today despite poor manufacturing data in the eurozone. US manufacturing data was confusing, with the report from IHS Markit demonstrating an accelerating expansion of the sector, while the report from the Institute for Supply Management showed an accelerating contraction. Meanwhile, US construction spending fell unexpectedly. While some market analysts attributed the rally of the EUR/USD pair to the underwhelming US reports, others explained the rally by the fact that China decided to retaliate in response to the US support of Hong Kong protesters.

Markit manufacturing PMI climbed to 52.6 in November from 51.3 in October according to the final estimate. Markit participants were expecting the same 52.2 figure as in the preliminary estimate. (Event A on the chart.)

ISM manufacturing PMI fell to 48.1 in November from 48.3 in October instead of rising to 49.2 as analysts had predicted. (Event B on the chart.)

Construction spending dropped 0.8% in October from September, whereas the median forecast had promised an increase of 0.3%. Furthermore, the previous month’s reading got a negative revision from an increase of 0.5% to a drop of 0.3%. (Event B on the chart.)

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