Skip to content

XTB TRADEBEAT

ISM beats forecasts but USD drifting lower

Summary:

  • ISM manufacturing 59.1 vs 58.7 exp and 59.7 prior
  • 17 consecutive months of expansion (50+) for this indicator
  • USDJPY threatening to move lower once more

 Whilst tomorrow’s NFP will likely steal the limelight this week for USD related events, this afternoon has seen the latest manufacturing sentiment release beat expectations even if it did pullback from last month’s reading. A print of 59.1 for the ISM data was above the 58.7 consensus forecast but nonetheless marked a drop on the prior reading of 59.7.

link do file download link

 The US dollar is moving lower again today with the vast majority of currencies (if we ignore crypto) rising against the buck. Source: xStation

With the 50 line marking the area between expansion and contraction it is another comfortable beat, making it 17 consecutive months of growth. Looking more closely at the report the prices paid rose to their highest since 2011 (72.7 vs 68.8 exp) but the employment component fell to its lowest level since May (54.2 vs 58.1 prior). 

link do file download link

 The recovery in the USDJPY has run into resistance around 109.75. A failure to clear this level could see it head lower once more. Source: xStation

The USD has been attempting something of a comeback of late after a prolonged period of decline with the USDJPY looking to recapture the 110 level earlier. Despite the better than expected ISM the market has ran into prior resistance around 109.75 and may be set to turn lower once more. 

Disclaimer

This article is provided for general information purposes only. Any opinions, analyses, prices or other content is provided for educational purposes and does not constitute investment advice or a recommendation. Any research has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Any information provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it.

Past performance is not necessarily indicative of future results, and any person acting on this information does so entirely at their own risk, we do not accept liability for any loss or damage, including without limitation, any loss of profit, which may arise directly or indirectly from the use of or reliance on such information.