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
Bullish
Oil - US Crude
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
Wall Street
Bullish
Gold
Bullish
GBP/USD
Mixed
USD/JPY
Bearish
More View more
Real Time News
  • #AUD May Extend Gains on #RBA Rate Decision After Wall Street Bounce - https://www.dailyfx.com/forex/fundamental/daily_briefing/daily_pieces/asia_am_briefing/2020/07/06/AUD-May-Extend-Gains-on-RBA-Rate-Decision-After-Wall-Street-Bounce.html
  • 🇯🇵 Household Spending YoY (MAY) Actual: -16.2% Expected: -12.2% Previous: -11.1% https://www.dailyfx.com/economic-calendar#2020-07-06
  • The Dow Jones may rise based on signals from trader positioning, placing the focus on resistance ahead. This is as the S&P 500 pressures a key falling trend line, will it hold? Find out from @ddubrovskyFX here:https://t.co/UvXqX50YIp https://t.co/dtE8NHLW7L
  • Heads Up:🇯🇵 Household Spending YoY (MAY) due at 23:30 GMT (15min) Expected: -12.2% Previous: -11.1% https://www.dailyfx.com/economic-calendar#2020-07-06
  • 🇦🇺 Ai Group Services Index (JUN) Actual: 31.5 Previous: 31.6 https://www.dailyfx.com/economic-calendar#2020-07-06
  • Stocks are off to an aggressive start as Q3 gets rolling as the anti-risk #Yen faces cautious selling pressure Canadian employment data is due this week What else is in store for #JPY in Q3? Check out my outlook here - https://www.dailyfx.com/forex/fundamental/forecast/weekly/jpy/2020/07/04/Japanese-Yen-Q3-Fundamental-Outlook-Dow-Jones-and-SP-500-Eyed.html?CHID=9&QPID=917702&utm_source=Twitter&utm_medium=Dubrovsky&utm_campaign=twr https://t.co/AqzPQwJzzz
  • The ASX 200 and AUD/JPY are at risk of losses as cases of Covid-19 continue to climb in Victoria, Australia’s second-most populous state. Get your #ASX market update from @DanielGMoss here: https://t.co/Jl5QAnyqCJ https://t.co/rqybMcC8qV
  • Heads Up:🇦🇺 Ai Group Services Index (JUN) due at 22:30 GMT (15min) Previous: 31.6 https://www.dailyfx.com/economic-calendar#2020-07-06
  • Texas virus cases increase 2.7% vs prior 4% 7-day average - BBG
  • $USDJPY Daily Pivot Points: S3: 107.3 S2: 107.4 S1: 107.46 R1: 107.56 R2: 107.6 R3: 107.7 https://www.dailyfx.com/pivot-points?ref=SubNav?utm_source=Twitter&utm_medium=DFXGeneric&utm_campaign=twr
USD Spikes, Gold Sinks as ISM Services PMI Tops Estimates

USD Spikes, Gold Sinks as ISM Services PMI Tops Estimates

2019-11-05 15:26:00
Thomas Westwater, Contributor
Share:

ISM Services PMI Talking Points:

  • The services sector bounced back in October with a reading of 54.7, up from last month’s reading of 52.6
  • USD/JPY surged while spot gold sank after the report crossed the wires with the positive data spurring risk appetite and squashing FOMC rate cut expectations
  • DailyFX Forecasts are published on a variety of markets such as Gold, the US Dollar or the Euro and are available from the DailyFX Trading Guides page. If you’re looking to improve your trading approach, check out Traits of Successful Traders. And if you’re looking for an introductory primer to the Forex market, check out our New to FX Guide.

The Institute for Supply Management released their report on the non-manufacturing sector Tuesday morning, with the headline figure printing 54.7, up from last month’s reading of 52.6. Markets reacted positively to the report crossing the wires as investors fear the recent slowdown in manufacturing may be spilling over into the larger services sector as the counterpart ISM manufacturing reading is in it’s third month of contraction. USD/JPY pushed above the 109.00 mark on the release and Gold breached below 1490.00, a new monthly low.

USDJPY with Gold (XAU/USD) Price Chart: 5 – Minute Time Frame (NOV 5)

USD Price Chart with Gold Price Overlaid ISM Services PMI October 2019

The beat Tuesday morning in the services side of the economy is helping lift concerns of a spillover from the manufacturing sector which is now in it’s third month of contraction according to the counterpart ISM manufacturing sector. While trade wars do not seem to be impacting the services side to the extent of manufacturing there still is concern among survey participants with one respondent stating “Current outlooks for commodities, equipment, and materials indicate purchasing now has leverage. Investment is still hampered by uncertainties in trade, global economic environment, manufacturing and the like.”

ISM SERVICES, NON-MANUFACTURING PMI vs S&P 500 INDEX

ISM Services and Manufacturing PMI Chart of S&P 500 Index Overlay

While markets continue to push higher, buoyed further by this mornings data, traders remain focused on trade war headlines, with positive rhetoric crossing the wires yesterday showing the US is considering the removal of some tariffs. Easing monetary conditions have also helped spur optimism as the Fed has not cut three times this year, however markets are now pricing only a 9% chance for a 4th rate cut this year, evidenced by Fed Fund Futures.

FOMC RATE CUT EXPECTATIONS (DECEMBER 2019)

FOMC Rate Cut Expectations

--Written by Thomas Westwater, Intern Analyst for DailyFX.com

Contact and follow Thomas on Twitter @FxWestwater

DailyFX forecasts on a variety of currencies such as the US Dollar or the Euro are available from the DailyFX Trading Guides page. If you’re looking to improve your trading approach, check out Traits of Successful Traders. And if you’re looking for an introductory primer to the Forex market, check out our New to FX Guide.

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

DISCLOSURES

News & Analysis at your fingertips.