ISM Non-Manufacturing PMI rises to 55.4, strong employment component

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The US ISM Non-Manufacturing PMI for October surprised by rising to 55.4 points. It was expected to tick a bit lower to 54 from 54.4 points in September. The services sector (non-manufacturing) is the vast majority of the US economy. The employment component rose from 52.7 to 56.2 points. This big rise in raises the expectations for Friday’s Non-Farm Payrolls. This release reflects the political mess around the government shutdown.

Before the publication, EUR/USD was sliding to around 1.3470 and is now below the minor support line of 1.3460. GBP/USD held its high ground 1.6040 and is now under 1.6030,  and USD/JPY traded around 98.30 and is now rising toward 98.50 — updates coming —

New orders slid from 59.6 to 56.8 points. Prices dropped from 57.2 to 56.1 and business activity rose from 55.1 to 59.7 points.

The IBD/TIPP Economic Optimism advanced from 38.4 to 41.1 points as expected. It is overshadowed by the ISM figure.

After a long streak of weak numbers (such as the ADP private NFP report) ISM manufacturing PMI (released on Friday), came out better than expected and helped the dollar recover.

On Thursday, the US releases the first estimate for Q3 GDP together with the ECB’s press conference following a highly anticipated rate decision.

More: 6 scenarios for the ECB rate decision

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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 a 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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