The fall in August is worse than expected, but the dollar is actually gaining, perhaps riding on the previous data release, which is more important. Factory orders were expected to fall by 9.4%. This follows a big leap in July.
Earlier, jobless claims came out at 287K, significantly better than 299K expected and breaking the losing streak of US indicators seen recently – a streak that triggered a big correction.
Consumer confidence fell to 86 points and the ISM manufacturing PMI also disappointed. The dollar seemed strong at first but finally broke down after the ISM number.
The focus today was on the ECB which did not change its policy and did not announce too much news. The euro was on the rise on the lack of news, but it is reversing its gains now.
Now the stage is set for tomorrow’s Non-Farm Payrolls. See how to trade the NFP with EURUSD.
