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EUR/USD holds near three-month lows despite weaker US manufacturing data

  • The Euro steadies as the Greenback eases slightly after softer US ISM data.
  • US ISM Manufacturing PMI fell to 48.7 in October, marking the eighth straight month of contraction.
  • HCOB Eurozone Manufacturing PMI confirmed at 50, pointing to stabilization in factory activity.

The Euro (EUR) steadies against the US Dollar (USD) on Monday, after the Greenback slipped modestly following weaker-than-expected US manufacturing data. At the time of writing, EUR/USD trades around 1.1525, recovering from an intraday low of 1.1505, but still hovering near its lowest level since early August.

The Institute for Supply Management (ISM) reported that US factory activity contracted for the eighth straight month in October, with the Manufacturing Purchasing Managers Index (PMI) slipping to 48.7 from 49.1 in September, below expectations of 49.5.

The sub-indices painted a mixed picture. New Orders improved slightly to 49.4, while Production fell sharply to 48.2, and Employment edged up to 46. The Prices Paid index eased to 58, indicating slower cost increases. ISM Chair Timothy Fiore said that “US manufacturing activity contracted at a faster rate, with contractions in production and inventories leading the decline,” adding that brief gains in demand indicators have not yet translated into sustained growth.

Complementing the ISM data, the S&P Global US Manufacturing PMI came in at 52.5 in October, up from 52 in September and marking the third consecutive month of expansion. Chief Business Economist Chris Williamson noted that while domestic demand remains resilient, “the surge in inventories and still-elevated price pressures raise questions about the sustainability of the recent upturn.”

The US Dollar Index (DXY), which measures the Greenback’s value against a basket of six major currencies, is hovering near 99.81, supported by the Federal Reserve’s (Fed) cautious tone following last week’s 25-basis-point rate cut. Chair Jerome Powell reiterated that additional easing this year is “not a foregone conclusion."

Earlier in the day, the HCOB Eurozone Manufacturing PMI was confirmed at 50 in October, in line with forecasts and slightly above 49.8 in September. The reading points to a stabilization in factory activity after a mild slowdown last month, as output continued to grow modestly while new orders stayed broadly unchanged.

US Dollar Price Today

The table below shows the percentage change of US Dollar (USD) against listed major currencies today. US Dollar was the strongest against the Canadian Dollar.

USDEURGBPJPYCADAUDNZDCHF
USD0.19%0.14%0.09%0.44%0.28%0.33%0.39%
EUR-0.19%-0.03%-0.12%0.24%0.09%0.15%0.22%
GBP-0.14%0.03%-0.06%0.27%0.15%0.18%0.26%
JPY-0.09%0.12%0.06%0.33%0.20%0.37%0.32%
CAD-0.44%-0.24%-0.27%-0.33%-0.18%-0.08%-0.02%
AUD-0.28%-0.09%-0.15%-0.20%0.18%0.06%0.15%
NZD-0.33%-0.15%-0.18%-0.37%0.08%-0.06%0.08%
CHF-0.39%-0.22%-0.26%-0.32%0.02%-0.15%-0.08%

The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the US Dollar from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent USD (base)/JPY (quote).

Author

Vishal Chaturvedi

I am a macro-focused research analyst with over four years of experience covering forex and commodities market. I enjoy breaking down complex economic trends and turning them into clear, actionable insights that help traders stay ahead of the curve.

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