Chicago PMI leaps to 63 points

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The forward looking Chicago PMI surprised with a leap from 55.9 to 63 points, far above 56.6 expected. This is the highest level since October. The figure was released a bit before the original schedule.

This is good news for the dollar, that is still licking its wounds from the Q1 GDP release. The US dollar is a bit higher, especially against the yen, but there is a far more to recover after the shocking GDP report– more coming

The Chicago Purchasing managers’ index is for the month of April. A clearer picture of the US economy is taking shape: Q1 was horrible and April already sees a rebound.

The US economy grew by only 0.1% (annualized) in Q1 2014 according to the first release. This big disappointment hurt the US dollar. A drop in business investment was the main worry.

On the other hand, the ADP NFP beat expectations with a gain of 220K jobs and a positive revision to March data.

Stay tuned for a live coverage of the Fed decision.

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About Author

Yohay Elam – Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I’ve accumulated. After taking a short course about forex. Like many forex traders, I’ve earned the significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I’ve worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.

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