The US manufacturing sector seems to be on fire, at least according to the forward-looking ISM Manufacturing PMI. the indicator reached 60.8 points, better than 58 expected. In addition, also inflation is on the rise: 71.5 points in the Prices component. The employment component, which is eyed for the NFP, tops 60 as well with 60.3. New orders stand at 64.6 points.
The US dollar extends its gains.
- EUR/USD slips from 1.1750 to 1.1733. The euro was hit by the violence of the Spanish police in Catalonia.
- GBP/USD is down to 1.3260, extending its falls related to the weak UK manufacturing PMI.
- USD/JPY is at 112.88, bouncing in the range.
A separate report showed that construction spending is up by 0.5% against 0.4% expected, albeit with a downward revision.
The ISM Manufacturing PMI was expected to stand at 58 points in September, down from 58.8 in August. Any score above 50 reflects expansion and scores close to 60 represent rapid growth.
The US dollar has been on the rise against many currencies. The violence in Catalonia and the deadly shooting in Las Vegas dampen the mood.
This is the first hint towards Friday’s Non-Farm Payrolls report on Friday.
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