3 May 2016
EUR/USD expands gains, at 8-month highs
EUR/USD is extending its gains during the Asian session, last trading circa 1.1540 new highs, with the theme of broad-based USD weakness persisting as the Fed fails to commit on a further rates hikes in the near future, judging by the latest FOMC.
Round up of latest EU/US data
Fundamentally, Valeria Bednarik, Chief Analyst at FXStreet, summarizes the latest developments, noting that "data coming from Europe showed that the manufacturing sector in the region grew modestly in April, as the final revisions of the Markit manufacturing PMIs came in mixed, with German reading up to 51.8, from March's 50.7, but below expectations, whilst the EU figure resulted at 51.7 and French one plummeted to 48.0."
As per US data, Valeria adds: "The ISM manufacturing declined to 50.8 in April from 51.8 in March, whilst the Markit manufacturing PMI also printed 50.8. Also released this Monday, US construction spending advanced in March to its highest level in more than eight years, up 0.3% from the previous month, giving hopes the first quarter slowdown receded, at least in the housing sector."
Challenges ahead for EUR/USD bulls
The uptrend remains firm, at the highest since August 2015, with Kathy Lien, Co-Founder at BK Asset Management, noting that despite the bullish trend, "there are many factors that could make the next few months difficult for investors and EUR/USD in particular."
Among the most pressing issues for Europe, Kathy names "the U.K. referendum, the recent strength of the euro could curtail the region's recovery, there may also be new elections in Europe with Spanish leaders failing to resolve a political stalemate and the migrant crisis fueled nationalism across the continent."
Round up of latest EU/US data
Fundamentally, Valeria Bednarik, Chief Analyst at FXStreet, summarizes the latest developments, noting that "data coming from Europe showed that the manufacturing sector in the region grew modestly in April, as the final revisions of the Markit manufacturing PMIs came in mixed, with German reading up to 51.8, from March's 50.7, but below expectations, whilst the EU figure resulted at 51.7 and French one plummeted to 48.0."
As per US data, Valeria adds: "The ISM manufacturing declined to 50.8 in April from 51.8 in March, whilst the Markit manufacturing PMI also printed 50.8. Also released this Monday, US construction spending advanced in March to its highest level in more than eight years, up 0.3% from the previous month, giving hopes the first quarter slowdown receded, at least in the housing sector."
Challenges ahead for EUR/USD bulls
The uptrend remains firm, at the highest since August 2015, with Kathy Lien, Co-Founder at BK Asset Management, noting that despite the bullish trend, "there are many factors that could make the next few months difficult for investors and EUR/USD in particular."
Among the most pressing issues for Europe, Kathy names "the U.K. referendum, the recent strength of the euro could curtail the region's recovery, there may also be new elections in Europe with Spanish leaders failing to resolve a political stalemate and the migrant crisis fueled nationalism across the continent."