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.



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

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
More View more
Real Time News
  • What is your forex trading style? Take the quiz and find out:
  • RBNZ's Hawkesby talking "considered steps" when setting monetary policy, leaning towards 25bps - With money markets pricing in 31bps worth of tightening at the October meeting. Room for disappointment.
  • Gold has plunged nearly 5% off the Monthly high with the sell-off now probing key weekly support here at 1738/47- looking for a pivot here with the Fed interest rate decision on tap. Get your $XAUUSD market update from @MBForex here:
  • RBNZ: - We have benefitted from a robust rebound in China, our main trading partner - The interruption to the economy's supply side has lasted longer than expected
  • RBNZ: - Vaccination program has aided a stronger-than-expected rebound in the global economy - Demand for our exports has fared better than previous recessions
  • Between the volatile risk trend picture at the moment along with the Fed rate decision and expected 100bp hike from the Brazilian central bank both on Wednesday, $USDBRL is going to be a very interesting pair to watch...
  • RT @EricBalchunas: $SPY traded more than the Top 5 stocks combined. Just when you think $SPY is fading away like an aging legend you realiz…
  • Bitcoin sharply lower on the day, but well off session lows around $42,500 $BTCUSD #Bitcoin
  • You know what index didn't suffer an overtly threatening reversal this past session? The Russell 2000. It didn't continue the same steady climb through 2021 that the Dow, SPX and Nasdaq enjoyed; so not as much excess premium
  • USD/JPY extends the rebound from the weekly low (109.11) as the stronger-than-expected US Retail Sales report fuels speculation for an imminent shift in monetary policy. Get your $USDJPY market update from @DavidJSong here:
Strongest ISM Manufacturing Since June 2011 Sets Up Dollar for More Gains

Strongest ISM Manufacturing Since June 2011 Sets Up Dollar for More Gains

Christopher Vecchio, CFA, Senior Strategist

Talking Points:

- US ISM Manufacturing expands at its fastest pace since June 2011.

- Contracting inventories coupled with expanding new orders, production suggest that US manufacturing strength will persist.


Manufacturing activity in the United States is seeing a rebound unseen in several years, according to data compiled by the Institute for Supply Management released today. The ISM Manufacturing gauge for August rose to 55.7, the highest level since June 2011 when the index was 55.8.

Indeed, manufacturing in the United States looks well-positioned to outperform going forward given the subcomponents of the report; and the report should help keep the underlying fundamentals under the US Dollar pointed higher.

Of note, the Employment subcomponent remained in expansion territory at 53.3, though was a touch softer than the July reading of 54.4. The optimism from the report is seen in the New Orders and Inventories subcomponents. With New Orders surging to 63.2 and Inventories staying in contraction territory at 47.5, it is clear demand is building, suggesting building strength in the underlying pace of growth for the US economy.

Here are the headline figures lifting the buck:

- ISM Manufacturing (AUG): 55.7 versus 54.0 expected, from 55.4.

- ISM Prices Paid (AUG): 54.0 versus 51.2 expected, from 49.0.

- Construction Spending (JUL): +0.6% versus +0.4% expected, from 0.0% (revised higher from -0.6%) (m/m)

Read more: Aussie, Pound Lead; US Dollar Holds Gains Despite Misleading Syrian Report

USDJPY 1-minute Chart: September 3, 2013

Strongest_ISM_Manufacturing_Since_June_2011_Sets_Up_Dollar_for_More_Gains_body_x0000_i1027.png, Strongest ISM Manufacturing Since June 2011 Sets Up Dollar for More Gains

Charts Created using Marketscopeprepared by Christopher Vecchio

Following the releases, the USDJPY jumped from ¥99.45 to as high as 99.83, but was trading back to 99.77 at the time this report was written. Elsewhere, the US Dollar hit fresh session highs against the Euro and the Swiss Franc, with the EURUSD sliding to $1.3144 and the USDCHF rallying to Sf0.9383.

--- Written by Christopher Vecchio, Currency Analyst

To contact Christopher Vecchio, e-mail

Follow him on Twitter at @CVecchioFX

To be added to Christopher’s e-mail distribution list, please fill out this form

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