The Survey from the Institute for Supply Management (ISM) yesterday showed that U.S. manufacturing output contracted in August amid some improvement in employment, but a further decline in new orders and a rise in inventories indicate that manufacturing activity may remain subdued for some time.<\/p>
ISM said its manufacturing PMI rose to 47.2 last month from July’s 46.8, the lowest reading since last November. A PMI reading below 50 indicates contraction in the manufacturing sector, which accounts for 10.3% of the economy.<\/p>
The business activity index (PMI) remained below the 50-point threshold for the fifth consecutive month.<\/p>
Five manufacturing sectors, including primary metals, furniture, computers and electronic products, reported growth last month. Machinery, textile mills, transportation equipment manufacturers, and electrical equipment, appliances, and components reported contraction.<\/p>
Output declined and the manufacturing sub-index fell to 44.8, the lowest level since May 2020. ISM said the low level of manufacturing execution is putting additional pressure on profitability.<\/p>
Residential investment fell 0.4 % and spending on new single-family construction projects fell 1.9 %. Construction of detached homes fell to a 16-month low in July, and inventory levels approached early 2008 levels.<\/p>
The decline in economic activity in many manufacturing sectors once again shows that the Fed’s tight policy measures to curb inflation have exhausted themselves and are now having a negative impact on the dynamics of production. And this is another argument for the beginning of a rapid and gradual easing of the policy, which in the medium term will lead to the strengthening of EURUSD.<\/p>
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The overall recommendation<\/strong> is to buy EURUSD.<\/p> Profits should be taken at the level of 1.1200. A Stop-Loss could be set at the level of 1.0900.\u00a0<\/p> The volume of the opened position should be set so that the value of a possible loss, defined with a protective stop order, does not exceed 2% of your deposit.<\/p> \u00a0<\/p>","protected":false},"excerpt":{"rendered":"Market analysis by financial analysts and experienced traders. Forecast for EURUSD.","protected":false},"author":1,"featured_media":5093,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[21],"tags":[],"class_list":["post-5108","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-forecasts-en"],"translation":{"provider":"WPGlobus","version":"2.12.2","language":"en","enabled_languages":["ru","en"],"languages":{"ru":{"title":true,"content":true,"excerpt":true},"en":{"title":false,"content":false,"excerpt":false}}},"yoast_head":"\r\n