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Rally of EUR/USD Looks Unstoppable

May 2, 2016 by Vladimir Vyun

EUR/USD was rising every single session of the previous trading week, and it looks like the currency pair is not going to stop the rally this week as well. US economic data added fuel to the upward movement as all indicators released today were below expectations.

Markit manufacturing PMI fell from 51.5 to 50.8 in April according to the final estimate, which was unchanged from the flash one. That is compared to the median forecast of 51.0. (Event A on the chart.)

ISM manufacturing PMI demonstrated the same exact reading (50.8%) in April, falling from the March level of 51.8%. Forecasters were wrong in this instance as well, promising much better reading of 51.6%. (Event B on the chart.)

Construction spending rose 0.3% in March from February. And yet again forecasts missed the actual figure, predicting growth in neighborhood of 0.5%. On the positive side, the February change received a huge positive revision from -0.5% to +1.0%. (Event B on the chart.)

EUR/USD as of 2016-05-02

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

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