FXstreet.com (Barcelona) - U.S. markets have extended losses on Wednesday after Chicago PMI posted an unexpected decline in August. The Dollar has rallied regained ground against Pound and Euro, while the Swiss Frank plunged, allegedly, after a SNB intervention.
Dow Jones Index drops 0.3%, while the Nasdaq Index trades 1.24% lower, and the S&P Index trades 1.25% lower, in the first hour of trading.
On the macroewconomic domain, the Chicago PMI Index has declined to 46.1 in September from 50.0 in August, back to levels below 50. which means contraction of business activity, and against the Experts expectations of an increase to levels arounf 52.1.
Furthermore, U.S. GDP has been revised to a 0.7% decline in the second quarter, from, the 1.0% fall previously estimated, a reading the improves considerably the 6.4% GDP contraction seen in the first quarter.
Dollar trims losses against Euro and Pound
EUR/USD upside reaction from Tuesday's low at 1.4525 has capped at 1.4675 on Early new York trading session, and the Pair has declined on the back of U.S. data, to test 1.4580 support. At the moment, the Euro trades at 1.4600.
GBP/USD recovery from 1.5770 low on Monday has extended to 1.6125 high and the Pound has retreated to intra-day low levels at 1.5945.
USD/JPY decline from 90.40 session high has found support at 89.30, and the Dollar trades, at the moment at 89.70.
The Swiss Franc has plunged sharply against the majors, in an alleged intervention of the SNB, although the Bank declined to make any comments on that respect. USD/CHF jumped from 1.0280 to 1.0450, and the EUR/CHF soared from 1.5085 to 1.5240.