Reports released from the United States over the current session were relatively good, being either within expectations or better. This led to a rally of the dollar. Meanwhile, the euro languished as traders were waiting for the monetary policy decision of the European Central Bank next week, anticipating some form of monetary stimulus from the bank.
Revised Markit manufacturing PMI was down to 51.3 in February from 52.4 in January. It was the weakest reading since October 2013. Forecasters had thought that the revised estimate would be the same as the preliminary one — 51.0. (Event A on the chart.)
ISM manufacturing PMI, on the other hand, rose to 49.5% in February from 48.2% in January. While the reading was above the forecast 48.5%, it was below the neutral 50.0% level, meaning that the ISM report showed contraction of the sector, unlike the Markit data that showed growth. (Event B on the chart.)
Construction spending rose 1.5% in January, three times the forecast increase of 0.5%. What is more, the December figure received a substantial positive revision from 0.1% to 0.6%. (Event B on the chart.)
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