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Afshin Sazegar | Euro rises after ISM index statements about $ 1,1070.

Afshin Sazegar | Euro rises after ISM index statements about $ 1,1070.

Afshin Sazegar | A disappointingly failed ISM index from the US on Wednesday afternoon has provided significant gains in the euro.

The US dollar came under considerable pressure, losing 0.32 percent to 97.88 points. The EUR / USD, however, rose 0.50 percent to $ 1.1071, marking the highest level since November 22.

The Manufacturing PMI for the manufacturing sector, unexpectedly slowed to 48.1 in November, from 48.3 in October. As a result, the highly regarded index remains below the growth threshold of 50. Economists had expected recovery to 49.2.

The subcomponent new orders dropped by 1.9 to 47.2 and are thus again at the lowest level since mid-2009.

"The slight decline in the manufacturing ISM index indicates that the manufacturing sector is not yet off the hook," said Andrew Hunter, senior US economist at Capital Economics. "However, there is more and more evidence that the downturn will soon bottom out as the Markit PMI has increased in recent months."

Also, construction investment in the US has fallen surprisingly strong. They had declined by 0.8 percent in October. A value of plus 0.3 percent was expected.

Trump's demand that the Federal Reserve should again ease monetary policy so that "the countries - of which there are many - can no longer benefit from our strong US dollars by further depreciating their currencies," weighed on the greenback additionally.

As a result, the spread between ten-year Bund yields and US yields narrowed 1.4 basis points to -212.2. That favored the euro.

Afshin Sazegar

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