March 1, 2021 by

EUR/USD started the first trading day of the month rising a bit and then trading sideways. But the currency pair slipped below the opening level later before continuing its sideways movement. The EUR/USD pair fell even though the dollar was under pressure from the rally in global stocks. Some market analysts explained the decline by dovish comments from members of the European Central Bank who signaled that the bank may expand its asset-purchase program to drive surging bond yields down. US macroeconomic reports released today were positive for the most part but markets largely ignore macro data.

Markit manufacturing PMI fell to 58.6 in February from 59.2 in January according to the final estimate. The actual value was close to market expectations and the preliminary figure of 58.5. (Event A on the chart.)

ISM manufacturing PMI, on the other hand, climbed to 60.8% in February from 58.7% in January, whereas experts were expecting it to stay unchanged. (Event B on the chart.)

Construction spending rose by 1.7% in January from December, beating the median forecast of 0.7%. The indicator rose by 1.1% in the preceding month. (Event B on the chart.)

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