The manufacturing sector was growing at a slower pace in November, but only just. According to ISM, the manufacturing PMI dropped from 58.7 to 58.2, slightly below 58.4 that was expected.
The US dollar is marginally lower on the news. The greenback is more interested in the potential vote on tax reform, In addition, the indictment of Micheal Flynn is grabbing the headlines.
The first hint for the November Non-Farm Payrolls comes from the ISM’s manufacturing purchasing managers’ index (PMI). The manufacturing sector is small but remains important. It was expected to slide from 58.7 in October to 58.4 in November.
In a separate publication, construction spending was predicted to advance by 0.5% after 0.3% last time. Markit’s manufacturing PMI came out at 53.9 in the final read, very similar to the original one. ISM’s research carries more weight in the US.
The US dollar was looking good ahead of the release. The tax bill may pass in a Senate vote later today. The remaining deficit hawks are coming together, coalescing around a bill, despite a dispute about the automatic “trigger”.
In addition, data published earlier this week was really great: GDP was upgraded to 3.3% in Q3. Also, new home sales and consumer confidence beat expectations, both reaching the highest levels in over a decade. The Fed also contributed its own positive stance. Incoming Fed Chair Jay Powell said that a hike in December is “coming together”.
Things are looking good for the US dollar. Only the Senate can ruin the party.Get the 5 most predictable currency pairs