US ISM Manufacturing PMI surprises to the upside – USD

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The US ISM Manufacturing PMI for October surprised by rising to 56.4 points. It was expected to slide to 55.3 points from 56.2 points in September. The survey already reflects some of the effect of the US government shutdown. The employment component disappointed with a drop to 53.2 points, down from 55.4. It provides a small hint towards the Non-Farm Payrolls scheduled in a week’s time. Other components were quite good. All in all, it is a very healthy report, indicating no issues in this sector.

EUR/USD was trading on very low ground, around the round 1.35 line and fell to a new low of 1.3483, and falling. GBP/USD had already lost 1.60 and traded at 1.5960 and is now below 1.5950. USD/JPY was climbing up towards 98.650 and is now above 98.60.

New orders remained at very high ground of 60.6 points, almost unchanged. This reflects strong growth. Prices also remain at healthy growth ground of 55.5, a bit higher than expected.

FOMC member James Bullard added fuel to the dollar fire, by playing down QE tapering and saying it would still leave a lot of stimulus. Is he preparing us for QE tapering in December?

Earlier, Markit’s final manufacturing PMI came out at 51.8, higher than the original release at 51.1 points. This reflects moderate growth. The ISM PMIs carry more weight than Markit in the US.

More: Has the long awaited recovery in the US dollar started?

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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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