Breaking: EUR/USD breaks above 1.1050 on weak ISM Manufacturing PMI, triggering recession fears

Yohay Elam FXStreet

ISM's Purchasing Managers' Index for the manufacturing sector has badly disappointed with 48.1 points in November, worse than 492. expected and 38.3 seen in October. The Prices component plunged to 46.7 points. The US industrial sector is still in the doldrums. New orders – a forward-looking component – has dropped to 47.2 points.

The employment component – which feeds into Friday's Non-Farm Payrolls – has declined to 46.6 points, indicating a loss of jobs.

In a separate release, US construction spending fell by 0.8% in October, against expectations for an increase of 0.3%.

The US dollar is down across the board, with EUR/UDS hitting a new high at 1.1066. The next resistance line to watch is 1.11, followed by 1.1130. Support awaits at 1.1040 and 1.0980. The greenback is under pressure also against other currencies.

EUR USD shooting higher after weak ISM Manufacturing PMI

The greenback had already been struggling earlier in the day, reversing some of its gains seen in November.

Author

Yohay Elam

FXStreet

Yohay is in Forex since 2008 when he founded Forex Crunch, a blog crafted in his free time that turned into a fully-fledged currency website later sold to Finixio.

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