Investors Prefer Risk, Keeping EUR/USD Going Higher

EUR/USD continues its rally as investors still favor riskier assets despite troubles in Egypt. The dollar attempt to advance after the report showed that US manufacturing continues to expand, but the rise was short-lived partly, perhaps, as construction spending dropped significantly instead of rising, as was predicted. EUR/USD trades near 1.3763.
ISM PMI rose to 60.8% in January as an rconomic activity in the manufacturing sector expanded in January for the 18th consecutive month. Analysts predicted a growth to only 57.8% from December reading of 58.5%. (Event A on the chart.)
Construction spending, on the other hand, was considerably worse than was predicted, falling 2.5% from November to December and frustrating economists, who predicted an increase by 0.1%. The previous month’s reading was revised from an increase by 0.4% to a decline by 0.2%. (Event A on the chart.)


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