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Euro in New York

Posted by Joseph Trevisani on Nov 3, 2014 11:42:00 AM

The euro opened in New York at 1.2502 having recovered from its  Asian low of 1.2440 and spending most of the European segment in a tight range between 1.2490 and 1.2510. 

European manufacturing purchasing managers indexes from Market Economics, were either poorer than expected, EMU and Germany, or in outright contraction, France and Italy, but engendered little market reaponse. The euro low had come in early Tokyo about three hours after the open.  

The dollar found early New York demand particularly against the yen, which forced the euro higher through the euro/yen but as in Europe 1.2510 marked the top. A brief slip to 1.2486  was bought up again, but it stopped just short of the prior high and the following fall was sharp to 1.2475. 

U.S. data at 8:30 am, October Markeit manufacturing PMI and ISM manufacturing, pointed in opposite directions, Markit slightly worse than forecast (55.9 vs. 56.2) and ISM  considerably better (59.0 vs. 56.1)which produced a period of volatile trading but the general movement was lower. Construction spending for September partially countered the manufacturing optimism (-0.4% vs. 0.7%) as well as remarks from the Institute for Supply Management's Bradely Holcomb that "exports are something to watch in a slowdown." Which slowdown was he referring to?  The euro corrected to 1.2506.

However the dollar remained in control and fronted again by dollar/yen,and the crosses the euro moved lower to 1.2478, then had a minor rally to 1.2496 and closed at 1.2483. 


eur min nov 3Chart: Bloomberg


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