Forex Blog

First-hand Forex trading experience and information about foreign exchange market that will be useful to traders


EUR/USD Starts Week with Small Gain

March 2, 2015 by

EUR/USD rose a little during the first trading session of the current week as macroeconomic data from the United States was disappointing. The currency pair met resistance at the 1.1240 level and is moving down now.

Personal income rose 0.3% in January, at the same rate as in December, missing the median forecast of 0.2%. Personal spending decreased by 0.2% — the better reading than in December (-0.3%) but still not as good as the forecast (no change.) (Event A on the chart.)

ISM manufacturing PMI fell from 53.5% in January to 52.9% in February while analysts predicted that the index would stay little changed. (Event B on the chart.)

Construction spending dropped 1.1% in January. Market participants counted on an increase by 0.4%. The December advance was revised positively from 0.4% to 0.8%. (Event B on the chart.)

Several reports were released on Friday (February 27):

US GDP rose 2.2% in Q4 2014 according to the preliminary (second) estimate. The actual reading was slightly above the predicted 2.1% but below the first estimate (2.6%) and the previous quarter’s increase (5.0%.) (Not shown on the chart.)

Chicago PMI plunged from 59.4 to 45.8 in February, missing the forecast level of 58.4 by a wide margin. It was the lowest level since July 2009 and the first reading to show contraction since April 2013. (Not shown on the chart.)

Pending home sales rose 1.7% in January, trailing market expectations of 2.5% growth. Meanwhile, the December reading was got a massive positive revision from -3.7% to -1.5%. (Not shown on the chart.)

The final reading of Michigan Sentiment Index was at 95.4 in February. While it was below the January figure of 98.1, last month’s value was above the preliminary figure of 93.6 and the forecast 94.2. (Not shown on the chart.)

EUR/USD for 2015-03-02

If you have any comments on the recent EUR/USD action, please reply using the form below.

Leave a Reply

required (will not be published)