Christopher Vecchio, Currency Analyst at DailyFX, comments:
“Optimism in global markets took a dent overnight as both Chinese and European PMI manufacturing figures disappointed, underscoring the rising concerns of a more concerted global slowdown. Global growth concerns couldn’t be coming at a worse time, when the US economy has undergone a series of disappointing data across all major points as the Federal Reserve winds down its stimulus program.
“The taper of QE3, while contingent upon data, looks like it will proceed as planned barring a major market dislocation. The US Dollar has barely benefited however, with the EURUSD holding above $1.3700 and the USDJPY struggling at ¥102.00. We turn to stock indexes as a guide for risk in the void of market moving US economy data. A further breakdown by the S&P 500 will be threatened by a daily close under 1807, while bulls can reassert their February dominance only above 1832.”