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.

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
EUR/USD
Mixed
Oil - US Crude
Bullish
Wall Street
Bullish
Gold
Bullish
GBP/USD
Bearish
USD/JPY
Bullish
More View more
Real Time News
  • What is the outlook for financial markets ahead of the first presidential debate and how are Democratic nominee Joe Biden and President Donald Trump doing in the polls? Find out from @ZabelinDimitri here: https://t.co/QQwAZTxZFg https://t.co/7meK4cF0U9
  • ❗Heads up for #Rupee $USDINR traders! The #RBI monetary policy announcement originally set for October 1 is going to be rescheduled at a later date, tbd, Will update once time is known - https://t.co/qVnd9BAnSl
  • European negotiators have indicated for the first time that they are prepared to start writing a joint legal text of a trade agreement with the UK, before fresh talks begin today, according to The Times $GBP
  • Heads Up:🇯🇵 BoJ Summary of Opinions due at 23:50 GMT (15min) https://www.dailyfx.com/economic-calendar#2020-09-28
  • The recent rebound in US stocks could be a welcoming sign for the road ahead, but could the #DowJones be at risk to a turn lower? The 20-day Simple Moving Average (SMA) may cross under the 50-day SMA, creating a bearish 'Death Cross' Learn more here - https://www.dailyfx.com/education/technical-analysis-tools/moving-average.html?CHID=9&QPID=917702&utm_source=Twitter&utm_medium=Dubrovsky&utm_campaign=twr https://t.co/VhlENtJjy2
  • Key levels in forex tend to draw attention to traders in the market. These are psychological prices which tie into the human psyche and way of thinking. Learn about psychological levels here:https://t.co/1oygcFMFNs https://t.co/Wk736Zdvhb
  • #SP500 Surges on Fiscal Stimulus Hopes Ahead of #PresidentialDebate - https://www.dailyfx.com/forex/fundamental/daily_briefing/daily_pieces/asia_am_briefing/2020/09/28/SP-500-Surges-on-Fiscal-Stimulus-Hopes-Ahead-of-Presidential-Debate-.html
  • The US Dollar will be bracing for a cascade of political risks including the first presidential debate, ongoing stimulus talks, the Supreme Court vacancy against the backdrop of key employment data. Get your #currencies update from @ZabelinDimitri here: https://t.co/quU4MmUjxA https://t.co/uoeSZapu8I
  • What is seasonal change in volatility. Are we going through one right now? Find out: https://t.co/G0qfpOmMl2 https://t.co/WfxEHnGobD
  • 🇰🇷 Business Confidence (SEP) Actual: 68 Previous: 66 https://www.dailyfx.com/economic-calendar#2020-09-28
EUR/USD Whipped Lower, Rebounds Higher as US ISM Services Soars

EUR/USD Whipped Lower, Rebounds Higher as US ISM Services Soars

2016-07-06 15:35:00
Christopher Vecchio, CFA, Summer Xing,
Share:

Talking Points:

- US ISM Non-Manufacturing/Services posts largest intermonth gain since 2008.

- Despite strongest headline since November 2015, Markit Services employment subindex weakest in 17-months.

- FX volatility is set to remain high - it's the right time to review risk management principles to protect your capital.

The June US Non-Manufacturing/Services Index registered 56.5 in June, 3.6 points higher than the May level of 52.9 – the largest single-month jump since 2008. The elevated reading now sits at its highest level since November 2015, after just previously hitting its lowest level since February 2014 in May. The report produced some outright bullish aspects – the headline was at its best rate in nine months, after all. The Business Activity subcomponent increased to 59.5 in June from the May reading of 55.1. The New Orders subindex registered 59.9, 5.7 points higher than 54.2 in May.

Despite some of the strong internals, the data has proven volatile; and along the way, it’s been augmented by one of the worst US labor market readings in recent history: the abhorrent +38K growth seen in May.The Employment subindex hit 52.7 after from the May reading of 49.7, which typically corresponds with jobs growth around 150-175K. Earlier in the day, the final June US Markit Services PMI showed the slowest hiring pace in 17 months in the service sector.

According to the ISM report, 15 (include Mining; Retail Trade; Real Estate, Rental& Leasing; Construction; Finance & Insurance; and Wholesale Trade) of the 60 non-manufacturing industries reported growth in June, and respondents’ comments are mostly positive about business and economy conditions.

Here’s the data moving the US Dollar this morning:

- USD US Markit Services PMI (JUN F): 51.4 versus 51.3 expected unch.

- USD US Markit Composite PMI (JUN F): 51.2 as expected unch.

- USD ISM Non-Manufacturing/Services PMI (JUN): 56.5 versus 53.3 expected, from 52.9.

Chart 1: EUR/USD 1-minute Chart (July 6, 2016 Intraday)

EUR/USD Whipped Lower, Rebounds Higher as US ISM Services Soars

Read more: As Brexit-Borne Contagion Spreads, Falling Yields Boost JPY and Gold

--- Written by Christopher Vecchio, Currency Strategist and Summer Xing, DailyFX Research

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

Follow him on Twitter at @CVecchioFX

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

DISCLOSURES