Search ForexCrunch

The ISM  manufacturing PMI came out at 50.8 points, just 0.8 above the 50 point threshold that separates growth from contraction. While this is still better than levels seen a few months ago, it is still quite poor and also below expectations that stood on 51.6. It is also short of the figure seen in March: 51.8 points.

And the other not-so-good news comes from the employment component which remains in contraction levels at 49.2 points.  Perhaps there is  some relief for the Fed in the fact that prices leaped to 59 points, from 51.1 seen beforehand. But is this jump real? And is it the right kind of inflation?

The US dollar continues suffering. EUR/USD, that was rejected under 1.15  made a quick move to 1.1534 but is struggling to maintain the gains. Other currencies seem to consolidate their gains against the greenback.

On Wednesday we will get two hints towards the Non-Farm Payrolls: the ADP private sector jobs report and the ISM Non-Manufacturing PMI. The services sector is doing a better job (pun intended) than the manufacturing one, and it is also the largest one. This should provide a reminder that the problem of the US is not jobs, but rather growth and inflation.