EUR/USD trimmed earlier gains after US ISM Manufacturing data

The euro trimmed its earlier gains against the US dollar, after US ISM indicator showed increased activity in the sector of manufacturing in June.

EUR/USD slid from a session high at 1.3060 to reach 1.3021 at 14:08 GMT. Currently it was trading at 1.3031, or gaining 0.11% for the day.

The Institute for Supply Management (ISM) reported minutes ago that its manufacturing PMI rose to a reading of 50.9 in June from 49.0 in May. Experts had projected a value of 50.5. Values above 50.0 are a signal of expansion in activity. New orders indicator rose to 51.9 in June from 48.8 in May. Output indicator climbed to 53.4 in June from 48.6 a month ago, while employment index entered the contraction zone, standing at 48.7 in June, down from a reading of 50.1 during the preceding month.

Additionally, US construction activity gained strength in May, registering the largest jump for over three years. Total Construction Spending in the United States increased by 0.5% on a monthly basis to a seasonally adjusted annual value of 874.9 million USD. This was the highest level since September 2009, while most experts expected spending in construction to have climbed by 0.6%.

The euro was supported earlier in the trade session, after it was indicated, that the slump in the Euro zone’s manufacturing sector was easing. Spain’s manufacturing PMI rose to 50.0 in June, the highest point in two years, up from 48.1 in May. France’s manufacturing PMI advanced to 48.4 in June from 46.4 in May, while Germany’s manufacturing PMI decreased to 48.6 in June, down from a reading of 49.4 in May. A separate report stated today that consumer price inflation in the Euro zone rose by 1.6% in June from 1.4% in May, which result was in line with preliminary estimates. However, Unemployment rate in the euro region climbed to 12.1% in May from a revised 12.0% in April.

Meanwhile, USD/JPY pair recorded a session high at 99.85 at 14:08 GMT as well as USD/CHF cross, which reached its highest point for todays trade at 0.9497 at 14:14 GMT. The euro, on the other hand, edged lower against the British pound, as EUR/GBP cross dropped by 0.04% to 0.8550. Ultimately, EUR/JPY pair increased its value by 0.76% to 129.97.