News & Analysis at your fingertips.

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. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
Wall Street
Mixed
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
More View more
Euro, Yen Plummet as US Dollar Surges on April ISM Manufacturing

Euro, Yen Plummet as US Dollar Surges on April ISM Manufacturing

Christopher Vecchio, CFA, Senior Strategist

The US Dollar has had a rough few trading days, as the Dow Jones FXCM Dollar Index (Ticker: USDOLLAR) lost over 1 percent between last Wednesday’s Federal Open Market Committee rate decision and yesterday’s low. However, on the back of a better than expected manufacturing report, the US Dollar has rebounded against its more significant currency counterparts, with the USDOLLAR (equal-weighted index of AUDUSD, EURUSD, GBPUSD, and USDJPY) taking back just over half of a percent after the release.

The Institute of Supply Management’s manufacturing index for April rebounded to 54.8 from 53.4 in March, erasing the losses from the prior two-months and pulling the index to its highest level in ten-months. Overall, the report was robust all-around, with the employment subcomponent most notably rising to 57.3 from 56.1. The ISM’s report is likely to alleviate some of the concerns raised by the first quarter United States growth reading on Friday, and should ease tensions headed into Friday’s crucial nonfarm payrolls report.

USDJPY 1-minute Chart: May 1, 2012

Euro_Yen_Plummet_as_US_Dollar_Surges_on_April_ISM_Manufacturing_body_Picture_1.png, Euro, Yen Plummet as US Dollar Surges on April ISM Manufacturing

Charts Created using Marketscope – Prepared by Christopher Vecchio

While the USDOLLAR moved higher, it was mainly on the back of weakness by the Euro and the Japanese Yen, not by the Australian Dollar or British Pound. The EURUSD fell by as much as 0.60 percent to 1.3204 from 1.3284 after the release, while the USDJPY rallied for as much as 0.73 percent to 80.39 from 79.72. It is worth noting that trading conditions remain thin with most major Asian and European markets closed for holidays.

--- Written by Christopher Vecchio, Currency Analyst

To contact Christopher Vecchio, e-mail cvecchio@dailyfx.com

Follow him on Twitter at @CVecchioFX

To be added to Christopher’s e-mail distribution list, send an e-mail with subject line "Distribution List" to cvecchio@dailyfx.com

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

DISCLOSURES