US factory orders rose by 2.1% in the month of May 2013. They were expected to rise by 2% after rising by 1% )before revisions= last time. Optimism was expected to make a small advance but disappointed by sliding from 49 to 47.1 points.
EUR/USD was trading just above 1.30 and USD/JPY was above 100. EUR/USD is ticking marginally lower.
USD/JPY continues advancing after making an impressive break beforehand. The dollar didn’t really wait for the data.
Today’s data is second tier. Much more important figures are released tomorrow: trade balance, jobless claims and the ISM Non-Manufacturing PMI. Regarding the latter, the employment component should be watched for hints towards the Non-Farm Payrolls.
The manufacturing PMI rose above 50 points, back to growth territory, but the employment sub component dropped below this line for the first time since September 2009. This is a worrying sign.
The services (non-manufacturing) sector is much bigger. Here is how to trade the non-manufacturing PMI with USD/JPY.Get the 5 most predictable currency pairs