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1 Apr 2014
EUR/USD: Dollar rebounds on positive manufacturing reports
FXStreet (London) - The dollar has rebounded against the euro after early EUR/USD bullishness, with data indicating that US manufacturing is recovering after the effects of below-normal weather conditions earlier this year.
The Institute for Supply Management’s manufacturing index increased to 53.7 in March from 53.2 a month earlier. The index printed below consensus expectations of 54.0.
US pick up after poor weather
The slight miss on expectations was offset by a positive Markit PMI report indicating that the US manufacturing sector remained in solid growth territory, with rising output levels and new business volumes. Those surveyed in the report saw an improving underlying demand and a catch-up effect following the weather-related slowdown earlier in the year.
A strong overall increase in manufacturing production levels during March was mainly linked to stronger domestic demand. Overall levels of new work rose sharply, but new orders from abroad continued to expand at an only marginal pace.
German labour market strength
The euro had been given an earlier boost by stronger-than-expected German labour market data. The German Federal Labour Office showed that the number of people out of work decreased by 12,000 to 2.901m in March. The jobless rate held steady at 6.7 percent after the reading for February was revised down from 6.8 percent.
EUR/USD climbed to a session high of USD1.3812 ahead of the US reports before declining to current levels at USD1.3797, up 0.15 percent on the session.
The Institute for Supply Management’s manufacturing index increased to 53.7 in March from 53.2 a month earlier. The index printed below consensus expectations of 54.0.
US pick up after poor weather
The slight miss on expectations was offset by a positive Markit PMI report indicating that the US manufacturing sector remained in solid growth territory, with rising output levels and new business volumes. Those surveyed in the report saw an improving underlying demand and a catch-up effect following the weather-related slowdown earlier in the year.
A strong overall increase in manufacturing production levels during March was mainly linked to stronger domestic demand. Overall levels of new work rose sharply, but new orders from abroad continued to expand at an only marginal pace.
German labour market strength
The euro had been given an earlier boost by stronger-than-expected German labour market data. The German Federal Labour Office showed that the number of people out of work decreased by 12,000 to 2.901m in March. The jobless rate held steady at 6.7 percent after the reading for February was revised down from 6.8 percent.
EUR/USD climbed to a session high of USD1.3812 ahead of the US reports before declining to current levels at USD1.3797, up 0.15 percent on the session.