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EUR/USD Falls Despite ISM PMI Drop

October 1, 2008 by

EUR/USD continued to fall today after the yesterday’s record-breaking decline, despite the unexpectedly low reading of the influential ISM purchase manager’s index. EUR/USD broke the technical and psychological support line at 1.4000 during the trading session, but then return to the levels above and is now trading near 1.4004.

ADP employment report showed that the employment decline slowed down from 37,000 from July to August to 8,000 decrease from August to September. The estimated decline was 50,000.

Construction spending stalled in August after 0.6% decline a month earlier and 0.5% forecasted drop for August.

ISM PMI fell significantly in September — from 49.9 to 43.5. Only a minor drop to 49.5 was expected by the market analysts. But it looks like it didn’t affect dollar’s rate much as the markets are currently driven by the bail-out plan speculations.

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