The currency pair developed its downtrend on Monday, but started to grow later due to the weaker than expected US data. EUR/USD stays above 1,0870 in the moment of writing.
US Manufacturing ISM PMI was below expectations. The index stays below 50, which means there is no expansion. Economists expected the indicator to rise above 50.
US Non-Manufacturing ISM PMI was also below expectations and declined below 52,6. The final reading of this indicator supported EUR/USD’s growth as well.
Friday’s US Labor Market data was mixed. The Unemployment level declined to 3,5%. However, the number of new jobs decreased for the reported period. Average Hourly Earnings has shown 0% growth.
All those factors influence negatively US currency. Investors have fears that the Fed is going to cut rates again.
We expect EUR/USD to develop this uptrend towards 1,1068. USD stays under the pressure due to fundamental factors.
