The US dollar rallied today as the manufacturing index showed that growth of the sector accelerated last month. The data confirmed that the US economy is recovering, giving incentive for the central bank to reduce monetary accommodation and start tightening earlier. The manufacturing index of Institute for Supply Management rose from 54.9 percent in April to 55.4 percent in May. The reading was slightly below the forecast of 55.7 but it was still above the neutral […]
Read moreToday’s data about Britain’s manufacturing sector left mixed feeling in Forex traders, resulting in a drop of the Great Britain pound against the US dollar but an advance versus the Japanese yen. The Markit/CIPS Purchasing Managersâ Index fell from 57.3 to 57.0 in May, slightly below the forecast of 57.1. At the same time, the report said that the index “again registered one of its highest readings in the survey history”. The pound is especially vulnerable […]
Read moreThe Brazilian real fell today as analysts surveyed by Brazil’s central bank downgraded their growth forecast for this year as well as the outlook for the exchange rate and for the key interest rate. The Central Bank of Brazil showed in its report that the median forecast for growth of gross domestic product was scaled down to 1.50 this week from 1.63 last week. Additionally, it is expected that the main rate will remain at 11.00, […]
Read moreEUR/USD dropped today but is trying to recover as of now. Disappointing economic reports from the United States bolstered the currency pair a bit, but it looks like EUR/USD is unable to keep upward momentum. ISM manufacturing PMI fell to 53.2% in May from 54.9% in April instead of rising to 55.7% as was predicted by analysts. (Event A on the chart.) Correction: As it turned out, the May value initially provided by ISM was […]
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