EUR/USD Declines After ISM Manufacturing PMI Climbs

EUR/USD climbed today as the dollar staged a broad-based recovery against its major peers. One of the reasons for the greenback’s rally was a surprisingly positive reading logged by ISM manufacturing PMI. Analysts are divided on whether the dollar’s rally was just a small upward correction in a bear market or it was something more significant.
Final Markit manufacturing PMI fell from 52.7 in May to 52.0 in June. The actual reading was very close to the preliminary reading and the analysts’ estimate of 52.1. (Event A on the chart.)
ISM manufacturing PMI climbed from 54.9% in May to 57.8% in June, while experts had predicted it to stay basically unchanged. (Event B on the chart.)
Construction spending showed no change in May from April, whereas specialists had promised the indicator to increase by 0.3%. The previous month’s change was revised from -1.4% to -0.7%. (Event B on the chart.)

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