Breaking: EUR/USD recaptures 1.09 as US ISM Manufacturing PMI plunges
|EUR/USD has jumped above 1.09 after hitting a new two-year low of 1.0879. Resistance awaits at 1.0926 – the previous double bottom. Support awaits at 1.0905 which was the previous 2019 low.
The US Dollar is falling across the board after the Purchasing Managers' Index for the manufacturing sector fell to 47.8 points – below expectations and under 49.1 points recorded in August. Any score below 50 represents contraction.
Fears of a US recession are rising yet it is critical to remember that the US consumer is keeping the economy running. The weak figure and the accompanying contracting employment component are pointing to a weak Non-Farm Payrolls report on Friday.
In addition, contraction spending rose by only 0.1% in August against 0.5% expected. The outcome lowers GDP estimates for the third quarter.
Here is the four-hour EUR/USD chart which shows the turnaround in the price:
more to come
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