The U.S. dollar continued to extend it’s weakness, giving way to most of the currencies which are posting further gains. The euro rose above 1.20 handle and remains strong above this level. Gold prices also posted impressive gains as price rallied to $1320 an ounce on Tuesday.
On the economic front, the markets were relatively quiet. The UK’s manufacturing PMI eased to 56.3 but the decline in the index did not impact the British pound much. The currency maintained gains on the back of a weaker USD. In the Eurozone, the final manufacturing PMI was in line with estimates at 60.6.
Looking ahead, the UK’s construction PMI data is expected to be released today. Economists forecast a slowdown in the construction activity with the PMI likely to show a reading of 52.8. In the U.S. the ISM’s manufacturing PMI data will also be released with estimates showing a reading of 58.1. Wrapping up the day, the FOMC meeting minutes will be coming out later in the evening.
