It looks like the EUR/USD currency pair was playing according to the risk aversion rules today. The currency pair was going down before the US reports began coming out but recovered most of its daily losses after the US income and spending numbers have been shown to be positive. The recovery stopped once some negative PMI and construction data had hit the markets.
Personal income and spending continued to rise in June in the United States. Income increased by 0.4% following 0.4% growth a month earlier (revised down from 0.5%). The median forecast was at 0.3%. Spending rose in line with the expectations — by 0.2%, which was slower than 0.7% growth in May (revised down from 0.9%). (Event A on the chart.)
Markit manufacturing PMI rose from 53.6 to 53.8 in July according to the month’s final report — the same as was anticipated according to the preliminary report released on July 24. (Event B on the chart.)
ISM manufacturing PMI decreased from 53.5 to 52.7 in July while the analysts’ forecasts pointed at a small growth to 53.6. (Event B on the chart.)
Construction spending grew by 0.1% in June while a more solid 0.6% gain was expected by the market participants. The indicator added 0.8% a month earlier. (Event C on the chart.)
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