EUR/USD moved lower during the Monday’s trading session, erasing the intraday gains, even though economic reports from the United States were underwhelming. The likely reason for such behavior was risk aversion that hit the Forex market. The main theme today was the negative data from China that scared investors and drove them to safer currencies like the dollar, the yen and the Swiss franc.
Final Markit manufacturing PMI dropped from 52.8 in November to 51.2 in December, the lowest level since October 2012. The revised estimate was not far from the analysts’ prediction of 51.1 and the preliminary reading of 51.1. (Event A on the chart.)
ISM manufacturing PMI was down from 48.6% to 48.2% last month. This means that the experts’ forecast of an increase to 49.1% was off the mark completely. (Event B on the chart.)
Construction spending contracted 0.4% in November from October. Again, experts have been overly optimistic, promising growth by 0.7% ahead of the report. Furthermore, the October gain received a substantial downward revision from 1.0% to 0.3%. (Event B on the chart.)
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