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
Subscribe
Please try again
EUR/USD
Mixed
Oil - US Crude
Bearish
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
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
Gold
Bullish
GBP/USD
Bearish
USD/JPY
Bullish
More View more
Real Time News
  • Heads Up:🇦🇺 Ai Group Services Index (APR) due at 22:30 GMT (15min) Previous: 58.7 https://www.dailyfx.com/economic-calendar#2021-05-06
  • The US Dollar is still struggling against most ASEAN currencies. USD/SGD remains downside-focused despite recent gains. USD/THB is eyeing a triangle. USD/IDR and USD/PHP may point lower. Get your market update from @ddubrovskyFX here:https://t.co/6Nvvmz8h6d https://t.co/dX69A341oc
  • US Dollar Outlook: USD/CAD Volatility to Rise, Jobs Data Looms -via @DailyFX Link to Full Analysis: https://www.dailyfx.com/forex/fundamental/us_dollar_index/usd_trading_today/2021/05/06/us-dollar-outlook-usd-cad-volatility-to-rise-jobs-data-looms.html #NFP $DXY $USDCAD https://t.co/OIYZ2YXxLK
  • Heads Up:🇺🇸 Fed Kaplan Speech due at 22:05 GMT (15min) https://www.dailyfx.com/economic-calendar#2021-05-06
  • The Federal Reserve discussed the vulnerability of asset prices should appetite change. Get your market update here: https://t.co/0nAEKEX1eh https://t.co/BD24UcDeyT
  • EUR/USD stronger amid broad USD weakness on Thursday $EURUSD https://t.co/h042KoSyuA
  • Forex Update: As of 20:00, these are your best and worst performers based on the London trading schedule: 🇨🇦CAD: 0.98% 🇨🇭CHF: 0.60% 🇦🇺AUD: 0.49% 🇳🇿NZD: 0.26% 🇯🇵JPY: 0.11% 🇬🇧GBP: -0.09% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/4u2cNfSmLn
  • RT @BrendanFaganFx: Federal Reserve Hints at Potential Declines in Asset Prices, Calls for Hedge Fund Transparency #Fed #FederalReserve #F…
  • Both EUR/JPY and EUR/USD are hovering near multi-year downtrend downtrends, while EUR/GBP may still have more room to the topside. Get your $EUR market update from @CVecchioFX here:https://t.co/2SYCKwz8hz https://t.co/tj6UQUDzRL
  • Commodities Update: As of 20:00, these are your best and worst performers based on the London trading schedule: Silver: 3.18% Gold: 1.61% Oil - US Crude: 0.31% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/mo9LS3teJl
US Dollar Slides as Chicago PMI Points to Continued Manufacturing Decline

US Dollar Slides as Chicago PMI Points to Continued Manufacturing Decline

Thomas Westwater, Analyst

Chicago PMI Talking Points:

  • The US Dollar dropped as Chicago PMI printed a disappointing figure of 42.9 this morning, missing expectations of 48.9
  • Manufacturing in the US entered its 5th month of contraction in December, accelerating fears of a global slowdown
  • The University of Michigan’s final read on consumer sentiment for January picked up to 99.8, but did little to support USD weakness

Hopes for a pickup in manufacturing activity were dampened this morning as Chicago PMI crossed the wires at the lowest mark since 2015, adding to weakness in the US Dollar. The manufacturing sector has contracted for 5 months now according to the Institute for Supply Management’s ISM manufacturing gauge. The US Dollar dropped further as the Chicago PMI report crossed the wires, with the DXY index dropping to its lowest level since January 23rd, currently trading at 97.66 from the 97.90 level earlier this morning.

USD and TNX Chart

Regional Federal Reserve manufacturing surveys along with ISM’s regional reports such as this mornings Chicago report give insights into how manufacturing is performing on a regional level and in turn, provides clues to manufacturing activity in the US. This mornings miss may dampen expectations for next weeks ISM manufacturing report that is expected to cross the wires at 48.5 which would send the US into its sixth month of contraction for the sector.

US Dollar Slides as Chicago PMI Points to Continued Manufacturing Decline

Source: Bloomberg

Digging into the figures behind the headline number for the release paints a gloomy picture for manufacturing activity in the major economic hub for the Midwest. All components in the index declined from the previous months read. New orders fell to 41.5 from 47.6, highlighting a slowdown in manufacturing demand.

The survey asked participants a special question for January with the report from ISM stating, “Will the signing of the USMCA agreement improve your supplier lines?”. The answers showed little optimism for a pickup in activity from the recently signed USMCA agreement with 60 percent of respondents expecting no improvement.

Michigan sentiment and US 10-Year Yield

The University of Michigan’s final read for January was released shortly after showing a more positive note on the economy coming in at 99.8, up slightly from the preliminary print of 99.1. However, the report did little to support USD or lift investor risk-appetite. The Michigan report was boosted by a positive outlook on consumer finances as 53 percent of all consumers reported gains in their personal finances. The report points to further spending appetite from US consumers, who have been paramount in keeping the US economy chugging along. Despite consumer confidence remaining returning to near historically high level, US treasury yield have continued to fall as investors worry about a global economic slowdown.

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

DISCLOSURES