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US ISM Manufacturing PMI disappoints with 52.7 points –

The US manufacturing PMI was leaked and this forced the ISM to release it earlier. The figure stands at 52.7 points, below  expectations. Employment drops to 52.7 points, from 55.5 in June. This is a worrying sign for Friday’s Non-Farm Payrolls.

The USD slides, with EUR/USD  climbing to 1.0980, USD/JPY dipping back down to 124, GBP/USD  regaining the 1.56 level, USD/CAD dipping from the highs and reaching 1.3130 and AUD/USD rising to 0.7280 from the earlier lows.

New orders actually rose from 56 to 56.5 and that counters the drop. However, other figures such as export orders and prices paid remained under the 50 point mark separating growth from contraction.

Earlier,  Markit’s final PMI read for  July stood on 53.8 points, unchanged from the initial read and the Fed’s favorite inflation number  advanced to 1.3% y/y.

At the recent Fed decision, the central bank left all its options open towards the decision in September. The Non-Farm Payrolls for July published on Friday could provide some indication.

Before that, we have the ISM Non-Manufacturing PMI and the ADP NFP. It’s going to be a busy week. With  thinner than normal activity in markets due to vacations taken by some traders, we  could see extreme moves.

More:  Why We Remain Strong USD Bulls in 3 Charts – Deutsche Bank

Yohay Elam

Yohay Elam

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.