Author: FX_Trdr

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By CountingPips.com

The US dollar was on the defensive against the other major forex currencies on Monday as economic data showed that manufacturing unexpectedly slowed in the US. The US dollar fell against all of the other major currencies (euro, pound, yen, aussie, kiwi, loonie, franc) on the day and notably declined below the 100 level against the Japanese yen for the first time since May 9th.

The major economic catalyst for the day was the ISM manufacturing data report that surprised economic forecasts by coming in less than expected for the month of May. The ISM reading for May came in with a 49.0 score which was below the expected 50.7 reading and indicated that manufacturing activity contracted for the month.

EURUSD:

The US dollar’s fall on Monday brought the euro to its highest level against the American currency in almost a month. The EUR/USD currency pair touched over 1.3100 level for the first time since trading on May 9th and currently sits over the 1.3050 level in trading.

USDJPY:

The dollar also fell below the major 100 level against the Japanese yen which could see further declines towards the 97.50 area if the 100 level provides resistance.

Events to Watch on Tuesday, June 4:

Australia — interest rate decision
Australia — current-account
United States — US trade balance

Written by Zac Storella, CountingPips Forex Blog & Currency Pair Research