The U.S. Dollar is getting stronger against other currencies amid a stronger PMI report released not so long ago. The thing is that the recent PMI report released by Markit, came in at 51.4 points, thereby showing some growth relative to the previous reading of 50.7 points in May.
It should be noted thought that the preliminary PMI report has shown the lowest pace of growth since September 2009. Still, this is the best index value seen over the last 3 months. The experts say that the positive dynamics in the manufacturing sector contributed to the index growth as well as more of the new orders and higher employment. This happens to be good news for the U.S. economy as well as the American currency.
At the same time, it is always important to keep in mind that the American economy is heavily dependent on the local sectors of services and consumption. The experts say that the manufacturing sector was curbing the overall economic growth in the second quarter of the year.
FOREX
Masterforex-V Academy reports that the U.S. Dollar is trading within the scope of a recovery from the long-term downtrend against a basket of other major currencies. At this point, it’s too premature to talk about any trend reversal. It’s worth considering only when the price breaks above such levels of resistance as the top of the descending MF sloping channel and MF pivot 100,58.
Alternatively, a break below the 91,88 low is going to resume the downtrend through such wave as wave c (C ) of level Daily or higher.
