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EUR/USD Pulls Back After Friday’s Jump

July 2, 2012 by

EUR/USD pulled back today, following the Friday’s rally. That was not a surprise as the gains were too big for such a short time and were hardly sustainable. Additionally, the unemployment rate in the eurozone rose somewhat (event A on the chart), reducing appeal of the euro. The manufacturing sector in the United States unexpectedly declined last month, while construction spending grew faster than anticipated.

ISM manufacturing PMI was at 49.7% in June. That was below both the predicted figure of 52.1% and the May reading of 53.5%. (Event B on the chart.)

Construction spending rose 0.9% in May. Market participants expected to stay at the April unrevised rate of 0.3% (which was 0.6% in the revision). (Event B on the chart.)

EUR/USD for 2012-07-02

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