The ISM Manufacturing PMI for November exceeded expectations with a rise to 57.3. It was expected to slide from 56.4 to 55.2 points. This is the highest level since 2011. The 50 point line separates expansion and contraction. The employment component serves as a hint for the Non-Farm Payrolls report on Friday. This component rose to 56.5 points, which is quite encouraging.
The dollar was on the rise earlier in the day, with USD/JPY temporarily crossing the 103 level. EUR/USD dropped to 1.3520 and GBP/USD, which already climbed above 1.64, dropped below this line. After the publication, the USD is on the rise.
Prices paid actually dropped, but new orders are showing strong growth at 63.6 points.
At the same time, the US released construction spending numbers for both September and October: spending for September dropped by 0.3% instead of rising by 0.5% as expected and in October it rose by 0.8% instead of 0.4% expected. These numbers are mixed and are overshadowed by the ISM Manufacturing PMI.
Earlier, Markit’s final manufacturing PMI was revised to the upside, from 54.3 to 54.7 points. Markit’s PMI still carries less weight than ISM’s.
Further reading: USD/JPY Reaches 6-Month High at 103.00 Price Target
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