The dollar sank versus the euro today as most economic releases from the United States were poor, most notably nonfarm payrolls. The ISM manufacturing index was very good but was not able to help the US currency to any noticeable degree.
Nonfarm payrolls were at 209k in July, below the predicted rate of 231k and nowhere near the previous month’s revised value of 298k. The unemployment rate unexpectedly rose by 0.1 percentage point to 6.2%. (Event A on the chart.)
Personal income and spending grew in June. Income rose 0.4%, at the same rate as in May and in line with forecasts. Spending advanced 0.4% too, above the previous month’s figure of 0.3% but below the predicted 0.5%. (Event A on the chart.)
Michigan Sentiment Index fell from 82.5 in June to 81.8 in July, according to the revised estimate, but was still above the forecast 81.5 and the preliminary reading of 81.3. (Event B on the chart.)
ISM manufacturing PMI rose from 55.3% in June to 57.1% in July, exceeding the median analysts’ projection of 56.1%. (Event B on the chart.)
Construction spending tumbled 1.8% in June, while experts predicted a 0.4% increase. The previous month’s reading was revised positively from 0.1% to 0.8%. (Event B on the chart.)
If you have any comments on the recent EUR/USD action, please reply using the form below.
