EUR/USD Continues to Stay Lower After ISM Report

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EURUSD Continue to Stay Lower After ISM Report
EURUSD Continue to Stay Lower After ISM Report

EURUSD Continue to Stay Lower After ISM Report

After the recently released U.S. disappointing jobless claims, the news of positive U.S. manufacturing data added some requisite fuel to support Wall Street – making the EUR/USD remain lower on Thursday.

While the morning trade saw the EUR/USD hitting 1.3636, which is also the pair’s lowest exchange rate since December 20; the pair jumped to the decent 1.3657 level. It was also speculated for the pair to face resistance at 1.3775 and support at 1.3544 – the session high and low respectively.

An early report by the Institute for Supply Management holding the fastest rate since April 2011, with its purchasing managers’ index dropping to 57.0 in December compared to its November’s reading of 57.3.

The last time the market saw greenback strengthening was when the U.S. Department of Labor announced a positive decline of 2,000 individuals that had filed for initial jobless benefits in the week ending December 28. Analysts had further predicted the jobless claims to decline by 7,000 to 334,000 last week, suggesting an overall improvement in the labor market conditions.

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The improvement in economics have been further boosted by the euro zone in which Markit research group confirmed a rise in its final manufacturing purchasing managers’ index, to 55.0, while beating November’s and December’s reading of 54.7 and 54.4 (estimated), respectively.

Another report from the European market said Germany’s manufacturing PMI’s index to be uniform as expected by analysts last month. As predicted, the PMI index rose to 54.3 in December, from a reading of 54.2 in November.

Meanwhile, France’s manufacturing PMI fell is expected to remain unchanged after falling to the seven month lowest of 47.0 in December, from 47.1 in November. The euro however was all right against the pound, with the EUR/GBP dipping 0.01% to 0.8307.

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To contact the reporter of this story: Jonathan Millet at john@forexminute.com