Forex - EUR/USD rebounds after weak ISM report
Investing.com
Published Jun 03, 2013 10:26AM ET
EUR/USD pulled back from 1.2956, the session low, to hit 1.3019 during U.S. morning trade, rising 0.19%.
The pair was likely to find support at 1.2943, Friday’s low and resistance at 1.3060, Thursday’s high and a three-week high.
The Institute for Supply Management said its index of purchasing managers fell to 49.0 in May from a reading of 50.7 in April. Analysts had expected an unchanged reading.
On the index, a reading above 50.0 indicates industry expansion, below indicates contraction.
The report showed that the ISM index of manufacturing prices fell to 49.5 from 50.0 in April. The new orders index registered 48.8, while the employment index declined to 50.1.
The weak data dampened expectations that the Federal Reserve will start to unwind its USD85 billion-a-month asset purchase program later this year.
The euro fell to session lows after better-than-expected euro zone manufacturing data dampened expectations for more easing measures by the European Central Bank at its policy meeting later in the week.
The region’s May manufacturing PMI improved to 48.3 from 47.8 in April indicating that the slump in the manufacturing sector is easing.
Germany’s manufacturing PMI was revised up to 49.4 in May from a final reading of 48.1 in April and above the preliminary reading of 49.0.
Separate reports showed that manufacturing activity in Spain contracted at the slowest pace in two years in May, while manufacturing activity in France shrank at the slowest pace in over a year.
The dollar fell to session lows against the pound and the yen, with USD/GBP rising 0.57% to 1.5281 and USD/JPY falling 0.65% to 99.76.
Sterling was boosted after data on Monday showed that the U.K. manufacturing PMI rose to 51.3 in May; the fastest rate of growth in 14 months, while April’s reading was revised up to 50.2 from a preliminary estimate of 49.8.
Get The News You Want
Written By: Investing.com
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.