Forex: EUR/USD – Euro gains continue

on Jul 2, 2013
Listen Tuesday July 2th: The euro pushed higher against the USD yesterday in late American trading yesterday, after the market had absorbed a welter of American and European updates throughout the day.

In Asian trading today, the pair rebounded from yesterday’s lows right after the release of US manufacturing data, which came in with better than expected figure.
Since the start of the European session, the pair has reached 1.3077, a daily high so far.

The Institute for Supply Management reported a rise in its manufacturing PMI to 50.9 for June, from 49.0 in May and above expectations for a reading of 50.5.
However, ISM’s US employment index fell to 48.7 in June from 50.1 in May, below the 50-point level separating growth from contraction for the first time since September 2009. The ISM numbers generally are likely to be seen as giving the Federal Reserve little reason to start the tapering of bond buying any time soon.

The euro found support yesterday in the Markit Eurozone manufacturing output data for June, which came in better than expected. The final Eurozone PMI hit a 16-month high at 48.8 points, just beating expectations for 48.7.
Eurostat will release the Eurozone Producer Price Index for May at 10:00 BST.
Back in the US, the Redbook Index for the week ended June 23 will be reported at 14:00 BST, followed by the ISM Index for the New York area.

Factory orders, economic optimism data and total vehicle sales for June are also scheduled for release in today’s American session.
Also later today, the Federal Reserve governor Jerome Powell is expected to comment on the Fed’s current monetary policy stance. Powell said last week that the central bank’s asset purchases may be scaled back later this year if growth holds up, but stressed that any such wind-back depends on economic factors rather than the calendar.