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Forex - EUR/USD gains as U.S. manufacturing index misses expectations

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Investing.com - The euro firmed against the dollar on Monday after a widely watched barometer of the U.S. manufacturing sector missed expectations and watered down recent hopes the Federal Reserve may soon wind down stimulus programs that weaken the greenback as a side effect.

In U.S. trading on Monday, EUR/USD was up 0.27% at 1.2855, up from a session low of 1.2772 and off from a high of 1.2868.

The pair was likely to find support at 1.2752, Wednesday's low, and resistance at 1.3048, last Monday's high.

The U.S. manufacturing sector grew less than expected in March.

The Institute for Supply Management's purchasing managers index for March fell to 51.3, from 54.2 in February.

Analysts had expected the index to remain unchanged at 54.2.

The figures sent the dollar falling on sentiments the Fed won't rush to dismantle stimulus programs such as its USD85 billion monthly bond-buying program, which weakens the greenback by flooding the U.S. economy with liquidity with the aim of keeping interest rates low.

Meanwhile, official data released Monday revealed that U.S. construction spending rose more than expected in March.

In a report, Census Bureau said that U.S. construction spending rose by 1.2% in February after contracting 2.1% in January.

Analysts were expecting U.S. construction spending to rise to 1.0% in February.

Trading was quiet, as many markets in Europe remained closed for the Easter holidays.

The euro, meanwhile, was flat against the pound and down against the yen, with EUR/GBP trading down 0.01% at 0.8439, and EUR/JPY trading down 0.67% at 119.97.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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