empty
 
 
fr
Assistance
Ouverture rapide de compte
Plateforme de trading
Déposer / Retirer

04.09.201901:16 Forex Analysis & Reviews: US Manufacturing PMI drops to three-year low, awaiting EUR/USD pair

Long-term review

Exchange Rates 04.09.2019 analysis

Data published by the Institute for Supply Management (ISM) showed that business activity in the US manufacturing sector declined in August, and the general PMI index fell to its lowest level in three years at 49.1 points and did not meet market expectations - 51.1. The initial reaction of the dollar was a recession. The greenback was under pressure in the EUR/USD pair while the euro recovered to 1.0950 dollars. The report reflects a significant decline in business sentiment. PMI has been steadily declining over the past four months. Demand declined, the index of new orders fell, the inventory index of customers recovered slightly compared to previous months, the index of outstanding orders dropped for the fourth consecutive month.

Exchange Rates 04.09.2019 analysis

On the other hand, ECB officials tend to lower rates. Referring immediately to five sources familiar with this issue, Reuters reports that the ECB is inclined to launch a large-scale stimulus package, which will include lower rates and a promise to keep them low for longer. "Many also support QE, but the opposition is complicating the discussion so far," the sources said. Sources also explained that the leadership of the ECB will announce the conditions necessary to reduce the rate, but there will be no emphasis on the date component. EUR/USD is likely to continue to retreat from daily lows.

Irina Maksimova,
Analytical expert of InstaSpot
© 2007-2024
Benefit from analysts’ recommendations right now
Top up trading account
Open trading account

InstaSpot analytical reviews will make you fully aware of market trends! Being an InstaSpot client, you are provided with a large number of free services for efficient trading.

Can't speak right now?
Ask your question in the chat.