FxPro Analysts What PMI Data Means for EURUSD
Data from the US today came as a pleasant surprise for the dollar. Preliminary PMI data showed the growth of the composite index from 56.3 to 57.9 against the expected fall to 54.5. This is stated in a comment from FxPro.
The activity component in the manufacturing and services sectors exceeded expectations and increased markedly compared to the previous month. This is in stark contrast to America's records for daily illness, death, and new lockdown measures.
In contrast, earlier today, European PMI data was surprisingly weak. The Composite Index fell from 50 to 45.1.
“The PMI is an important factor in the movement of the currency and stock markets during times of high uncertainty, as it is an excellent indicator of economic turning points. In this case, the sharp contrast of data from Europe and the USA clearly testifies in favor of the depreciation of the euro against the dollar, since, as we see in the first minutes after the publication, EURUSD again does not rise above 1.1900, ”summarize the FxPro analysts.
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