US Factory Orders Rise 2.1%, optimism falls

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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.

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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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