- 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.
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).
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.
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