ISM Non-Manufacturing PMI misses with 55.9 – EUR/USD resumes

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Disappointing news from the US: the services sector expansion has slowed significantly in October with the ISM Non-Manufacturing PMI falling to 55.9 points, worse than expected. This includes a fall in the employment component from 59.2 to 55 points, indicating a weaker NFP tomorrow. 

The dollar is sliding, with EUR/USD moving higher after a short pause.

Factory orders beat with a a rise of 1.5% instead of 1.4% and small upwards revision, but this is overshadowed by the PMI.

In the meantime, Janet Yellen prepared remarked consist of a repeat of yesterday’s appearance. She says that a delay in a rate hike risks an abrupt move later on.

The ISM Non-Manufacturing PMI was expected to slide to 58 points in November after an excellent 59.1 points in October. Factory orders carried expectations for a rise of 1.4% after -1% beforehand (and before revisions). At the same time, Janet Yellen begins her testimony.

Towards the release, EUR/USD traded at a high of 1.08 following the Draghi disappointment.

Earlier, Markit’s services PMI was revised to the downside. ADP NFP was positive yesterday.

Yesterday, Yellen seemed to cement a rate hike in December while talking about a gradual move afterwards. Her colleagues Lockhart and Williams repeated the same stance. Now she is in an official testimony on Capitol Hill.

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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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