Order bookings and surge in export volumes boosting dollar strength

As per the monthly report released by U.S. Census Bureau that factory orders for the month of April rose 2.1% which was more than the estimates of a 2.0% gain. This is strengthened by a surge in manufacturing of motor vehicle, aircraft and energy equipment orders. This has been the first increase in last eight months. In last month, U.S. factory orders chopped down slightly by 0.1%, drawn attention to crashing oil prices and a dip in exports volumes.

The EUR/USD pair made a peak at a session high of 1.1224 in European morning trading before slipping to a daily low of 1.1122 on a choppy day of trading. EUR/USD had been in a holding pattern between 1.05 and 1.10 since mid-March until the euro rallied significantly against the dollar early last week. The pair likely gained support at 1.0858 the low from April 28 and met resistance at 1.1291 the high from 1^st May.

The US dollar rose slightly against the euro on Monday extending gains from late last week amid stronger than expected U.S. factory order data. EUR/USD fell 0.0051 or 0.46% to 1.1148 on Monday in U.S. afternoon trading, as the dollar posted mild gains against its European counterpart for the third consecutive session.

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