Dollar Up vs. Euro Following Good Fundamentals
EUR/USD declined today as the data shows the improvements in the U.S. economy, while the Europe is still troubled with the budget deficit problem. The increase of the personal income and the growth in the manufacturing sector show the robust economic recovery, while the huge jump in construction spending further supports the optimistic outlook for the U.S. economy. EUR/USD is currently trading near 1.3202 level.
U.S. personal income rose by 0.3% in March. That’s a step up compared to the February revised increase of 0.1%, yet is still lower than the level of 0.4% the analysts expected.
ISM PMI index rose to 60.4 in April from 59.6 in March. The manufacturing sector was growing for the nine consecutive months with the fastest pace since June 2004. The forecast for this month was 60.0.
Total construction spending increased 0.2% in March from February, which is better than estimated -0.4% rate and significantly better than previous -2.1% rate, revised from -1.3%.