ISM Manufacturing PMI beats with 54.7 – USD extends gains

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Better than expected data from the US: the ISM Manufacturing PMI jumped by 1.5 points to 54.7, better than 53.2 predicted. The prices paid component jumps to 65.5. New orders are up to 60.2. Also, the employment component is looking good with 53.1 instead of 52.5 expected. This is a positive sign for Friday’s Non-Farm Payrolls report.

In a separate publication, construction spending is also beating projections, rising by 0.9% instead of 0.6% estimated and on top of an upwards revision worth 0.1%.

The USD is higher, with EUR/USD hitting new lows for the day.

The US ISM Manufacturing PMI was expected to rise from 53.2 points in November to 53.7 points in December. Similar purchasing managers’ indices for China as well as the UK beat expectations.

The US dollar started 2017 with a resumption of the rises, after taking a break during the holidays. EUR/USD dropped back under 1.04, GBP/USD struggled to rise in spite of good data and USD/JPY tops 118 once again.

Also among commodity currencies, we are seeing the loonie failing to advance even though oil prices are at 18 month highs and the Aussie only briefly enjoyed the Chinese data.

Earlier, Markit’s parallel manufacturing PMI saw a minor upgrade from 54.2 to 54.3 points.

More: 2017 – when politics beats central banks

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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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