- ISM Manufacturing PMI: 58.7 vs 58.3 exp
- Beat ends 2 consecutive misses for this metric
- USD enjoying solid day of gains
The final economic release of the week of note has come in better than expected with the latest US manufacturing reading supporting the earlier NFP in portraying strength in the world’s largest economy. The ISM manufacturing PMI for May rose to 58.7 from 57.3, topping consensus forecasts that called for 58.3. The US final manufacturing PMI is released 15 mins before the ISM and doesn’t normally garner as much attention and this reading slipped slightly to 56.4 from 56.6 against consensus forecasts to remain in line.
The ISM manufacturing reading rose last month while the US PMI dipped narrowly, with both metrics remaining near their highest levels of the decade. Source: XTB Macrobond
Coming after the earlier all-round solid NFP report, The ISM could be seen as another positive for the USD which is rising against most of its peers on the day. The greenback is only falling lower to the ZAR, MXN and GBP in today’s session with gains seen against all other currencies. The GBP itself has benefited from an earlier higher than expected manufacturing reading, with the UK PMI rising to 54.4. The comparative readings here highlight the strength seen in the US which continues to be a shining light on the global stage as far as manufacturing activity goes.
The USD is enjoying a good day of gains, supported by solid data in both the NFP and ISM. Source: xStation
The USDJPY has had a strong day of gains and moved back near to its highest level of the week after breaking above the 109 level. However, the longer term picture remains a little unclear with the 110 region providing a significant prior resistance. If longs can push price above there then further upside can be expected but until then there’s the chance that a S-H-S reversal is forming which could signal a large move lower.
USDJPY is moving higher today but the pair remains below possible resistance around 100. Source: xStation
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