U.S Manufacturing Gauge Swings Into Contraction – Long Positions Suggested on EURUSD
EURUSD skyrocketed to three-day high at above $1.12000, after a report from the Institute of Supply Management showed U.S. factory activity in August contracted for the first time since February. The drop in new orders and production dragged the index down by 3.2 percentage points to a reading of 49.4.
Disappointing manufacturing number is believed to weaken the case of a rate hike later this month. According to the CME Group’s Fed Watch tool, there is only 24 percent chance of a hike in September, down from 30 percent before the ISM data was released, while the odds for a hike in December fell to 53.6 percent from 57.2 percent.
Buy Stop at 1.12000, Take profit at 1.12440, Stop loss at 1.11720