We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

Free Trading Guides
EUR/USD
Bullish
GBP/USD
Mixed
USD/JPY
Bullish
Gold
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Oil - US Crude
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Bitcoin
Mixed
More View more
Real Time News
  • Here's the recording from this morning's webinar if you missed it - https://t.co/pcK2IkBSrt
  • $USDMXN price action plunged 5.4% since late November and leaves the Mexican Peso at 16-months highs against the US Dollar. Get your USD/MXN update from @RichDvorakFX here: https://t.co/uDMgCMtjOV https://t.co/aQWkrZDvKV
  • Heads Up:🇺🇸 USD FOMC Meeting Minutes (JAN 29) due at 19:00 GMT (15min) https://www.dailyfx.com/economic-calendar#2020-02-19
  • $USDMXN price action plunged 5.4% since late November and leaves the Mexican Peso at 16-months highs against the US Dollar. Get your USD/MXN update from @RichDvorakFX here: https://t.co/uDMgCMtjOV https://t.co/nktDUjPHjQ
  • Update on #Cryptocurrencies #BITCOIN +2.47% #BITCOINCASH +0.14% #ETHEREUM +0.41% #RIPPLE +2.02% #LITECOIN +2.24%
  • RT @stlouisfed: Which industries tend to be the most responsive to national expansions and recessions, and which industries tend to be the…
  • RT @EU_Eurostat: Euro area #construction down by 3.1% in December 2019 over November; -3.7% over December 2018 https://t.co/tzzElK5EQA http…
  • RT @C_Barraud: #OOTT | #OPEC SENDS OFFICIAL INVITES FOR MARCH 5-6 MEETING: DELEGATES - BBG
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 97.00%, while traders in France 40 are at opposite extremes with 83.30%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/uVS56jeLSZ
  • $USDMXN: Can the Mexican Peso Rally Last Despite US Dollar Dominance? Full Analysis: https://www.dailyfx.com/forex/market_alert/2020/02/19/usd-mxn-price-usdmxn-forecast-can-mexican-peso-rally-last-amid-us-dollar-dominance.html - via @DailyFX #FX #Forex #Trading $USD $MXN https://t.co/6JjNa9aO11
U.S. ISM Non-Manufacturing Tops Forecast, Spurs Risk-Taking Behavior

U.S. ISM Non-Manufacturing Tops Forecast, Spurs Risk-Taking Behavior

2011-10-05 14:22:00
David Song, Currency Strategist
Share:

THE TAKEWAY: U.S. Service-Based Activity Slows Less-Than-Expected > Raises Outlook For Growth > Spurs Risk-Taking Behavior

The ISM Non-Manufacturing index fell back to 53.0 in September from 53.3 in the previous month, which exceeded forecasts for a 52.8 print, but the breakdown of the report casts a weakened outlook for the world’s largest economy as it reinforces a weakened outlook for private sector activity. Indeed, the U.S. dollar lost ground following the report as the positive development raise risk-taking behavior, but the rebound in market sentiment is likely to be short-lived as the fundamental outlook for the world economy remains deteriorates.

A deeper look at the report showed the business activity index advancing to 57.1 from 55.6 in the previous month, with the gauge for new orders increasing to 56.5 from 52.8, while the employment component fell back to 48.7 from 51.6 to mark the first contraction since August 2010. The report instills a weakened outlook for Friday’s Non-Farm Payrolls report as we’re expected to see a protracted recovery in the labor market, and the slowing recovery in the world’s largest economy may weigh on risk-taking behavior as the outlook for global growth falters.

U.S._ISM_Non-Manufacturing_Tops_Forecast_Spurs_Risk-Taking_Behavior_body_ScreenShot034.png, U.S. ISM Non-Manufacturing Tops Forecast, Spurs Risk-Taking Behavior

The EUR/USD pushed back above 1.3300 following the better-than-expected ISM report, but the single-currency may trade heavy over the next 24-hours of trading as the European Central Bank is widely expected to lower the benchmark interest rate by 25bp. In turn, the recent rebound in the euro-dollar is likely to be short-lived, and we may see the exchange rate make another run at the 38.2% Fibonacci retracement from the 2009 high to the 2010 low around 1.3100 as it searches for support. However, the EUR/USD may threaten the rebound from earlier this year (1.2873) should the ECB show an increased willingness to expand its nonstandard measures, and the single-currency may ultimately give back the advance from the previous year as the fundamental outlook for Europe deteriorates.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES

News & Analysis at your fingertips.