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
EUR/USD
Mixed
Oil - US Crude
Bullish
Wall Street
Mixed
Gold
Bullish
GBP/USD
Mixed
USD/JPY
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
Real Time News
  • RT @Fxhedgers: MUSK DOESN’T DENY THAT TESLA SOLD ALL THEIR BITCOIN HOLDINGS - TWEET
  • What is your forex trading style? Take the quiz and find out: https://t.co/YY3ePTpzSI https://t.co/CDAmncXkaR
  • The ISM manufacturing index plays an important role in forex trading, with ISM data influencing currency prices globally. Find out about the recent history of ISM data, how to track it, and how to trade its release here: https://t.co/MZtBh88nOv https://t.co/hTUNcuig70
  • US equities endured turbulent price action last week and could be positioned for further volatility as fundamental forces butt heads and investors look to negotiate the shifting landscape. Get your market update from @PeterHanksFX here: https://t.co/DcI8LXFLtY https://t.co/U1MEE8OmZg
  • The continuity seen across these volatility cycles is a good thing. Historical precedence offer a blueprint for identifying conditions supportive for a vol-event to occur, and how they may unfold. Deepen your knowledge of historical volatility here: https://t.co/vg7w10la3j https://t.co/POsnWwTmER
  • Speculative stubbornness continues to hold back emergent fears like inflation and central bank moderation, but no certain of progress on that battle this week. While $NDX, $BTCUSD and Pound are on my radar, #Dollar tops my watch list: https://www.dailyfx.com/forex/video/daily_news_report/2021/05/15/Dollar-Outlook-Throttled-by-Both-Risk-Rebound-and-Curbed-Inflation-Concerns.html https://t.co/aYjyvQzhIA
  • AUD/USD remains range-bound but trend potential exists elsewhere in pairs such as AUD/JPY or AUD/CAD. Get your market update from @JStanleyFX here: https://t.co/bppORO1NEg https://t.co/6mXqAOrl9H
  • What are some technical and fundamental factors affecting the equities market? Get your free forecast here: https://t.co/YQG1aaIT8C #DailyFXGuides https://t.co/oOyN7fUaC6
  • The Federal Open Market Committee (FOMC) Minutes may drag on the price of gold as the central bank appears to be in no rush to switch gears. Get your market update from @DavidJSong here: https://t.co/2EvNplObIk https://t.co/hhEAnqhAEu
  • There’s a strong correlation between interest rates and forex trading. Forex is ruled by many variables, but the interest rate of the currency is the fundamental factor that prevails above them all. Learn how interest rates impact currency markets here: https://t.co/J0EPMD2Cfi https://t.co/gNiVpWrd1p
US Dollar Gains After September ISM Manufacturing Report Shows Growth

US Dollar Gains After September ISM Manufacturing Report Shows Growth

Christopher Vecchio, CFA, Senior Strategist

THE TAKEAWAY: USD ISM Manufacturing (SEP) > 51.5 versus 49.7 expected, from 49.6 > USDJPY BULLISH

More confusing data out of the United States today with the September ISM Manufacturing index posting moderate gains to 51.5, above the 49.7 expected and above the August reading of 49.6. This is the first reading above 50.0 – and thus the first expansion in manufacturing – since May, when the index read 53.5. Why is this data confusing? Last week, Durable Goods data for August showed a -13.2% plunge on a monthly-basis, while the Chicago Purchasing Managers index printed 49.7 for September. For all intents and purposes, the data last week – which came in line with previous ISM Manufacturing releases – looks like a more reasonable assessment of the US economy.

Within the September ISM Manufacturing report were some interesting developments in various subcomponents. Prices Paid, a gauge of inflation, soared to 58.0 from 54.0, the highest such reading since April 2012 (61.0). The Employment subcomponent, which measures sentiment towards hiring within manufacturing, gained to 54.7 from 51.6, the highest reading since June 2012 (56.6). With respect to the Employment subcomponent, it is important to note that it remains below the six-month average of 54.9.

USDJPY 1-minute Chart: October 1, 2012

US_Dollar_Gains_After_September_ISM_Manufacturing_Report_Shows_Growth_body_Picture_1.png, US Dollar Gains After September ISM Manufacturing Report Shows Growth

Charts Created using Marketscope – Prepared by Christopher Vecchio

Following the better than expected data, the US Dollar initially sold off against the Euro and the commodity currencies, but by the time this report was written, the AUDUSD and EURUSD had traded back to their prerelease levels. But the one pair that stayed elevated was the USDJPY: the safe haven cross jumped from 77.90 ahead of the data to as high as 78.10, before falling back to 78.07.

--- 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