The EURUSD pair is recording dynamic declines today, with the US dollar strengthening in the broad FX market. The pair is currently losing close to 0.7% and is slipping close to the support zone set at 1.09. Today we learned the NY Fed index for manufacturing and the data showed a much better than expected reading. The index not only scored a sharp rebound, but is coming out on a positive note and is at its highest level since July. Importantly, the ISM index has been below the 50-point level since November, indicating a contraction in economic activity. Of course, one swallow does not make a spring, and in addition we have seen higher fuel prices recently, which may stop any potential expansion. Nevertheless, the dollar still has something to say and it seems that with data like this, the Fed should raise interest rates in May. This week we will know more regional readings and at the end of the week the PMI index.
Source: xStation 5
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