On Tuesday, the pair continued its downside drop for the fourth day before the release of U.S. ISM manufacturing data as the improvement in the sentiment, following the release of upbeat data from major economies damped demand on the green currency as a refuge.
The improvement in manufacturing data from major Chinese, Indian and Australian economies on Monday managed to offset the contraction for the fifth month in a row for European manufacturing, while on Tuesday, Swiss andU.K.manufacturing figures and German unemployment came better-than-expected to add more positivity to the sentiment.
The Swiss franc took a boost after PMI manufacturing beats estimates as it recorded an expansion of 50.7 compared with both median estimates and the prior readings of 45.4 and 44.8 respectively, while later in the day, U.S. ISM manufacturing is expected to record 53.4 from 52.7 in November.
The main focus this week is on manufacturing and services data from major economies where investors will track the latest developments in major sectors in the fourth quarter on hopes there will be further improvement in the first quarter of 2012.
On Wednesday, amid the absence of fundamentals from the Swiss economy, Eyes will be on MBA mortgage applications for Dec. 30 at 12:00 GMT, which will be followed by factory orders at 15:00 GMT with expectations referring to a 2.0% rise in Nov. compared with the prior 0.4% drop.
The data is expected to affect the pair’s movement, yet the pair will probably more affected by the general sentiment.
Originally posted here
