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  3. EURUSD is controlled by “bears”. Overview for 02.10.2018

EURUSD is controlled by “bears”. Overview for 02.10.2018

02.10.2018

EURUSD keeps sliding down: the deeper it falls, the more they sell it. The current quote for the instrument is 1.1510.

The reason of this decline was the growth of the US 10Y bonds yesterday. A bit later in the evening, “bears” were slowed down a bit by the numbers published by the USA, but right now they are pushing the major pair to the bottom with renewed vigour.

The numbers were a bit disappointing. The ISM Manufacturing PMI fell up to 59.8 points in September after being 61.3 points the month before and against the expected reading of 60.1 points. The components of the report shows that the ISM Manufacturing PMI improved up to 58.8 points after being 58.5 points, while the ISM Manufacturing New Orders dropped from 65.1 points in August to 61.8 points this month. The ISM Manufacturing Prices plummeted up to 66.9 points after being 72.1 points in the previous month. It’s not the best news for the USD, because according to the ISM this decline may continue next months as well.

The Construction Spending added just 0.1% m/m in August against the expected reading of +0.5% m/m.

Nevertheless, these negative readings were quickly forgotten by investors and they continued selling the pair. Yesterday, the 10Y was 3.06% and today it’s 3.08%. This is the reason the USD is rising and getting stronger.

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