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
Bullish
Oil - US Crude
Mixed
Wall Street
Mixed
Gold
Bullish
GBP/USD
Bearish
USD/JPY
Mixed
More View more
Real Time News
  • Struggling to define key levels? Floor-Trader Pivots assist traders in identifying areas in a chart where price is likely to approach and can be used to set appropriate targets, while effectively managing risk. Learn how to use this indicator here: https://t.co/Ye4m1FMKUW https://t.co/sqeRL7Rf7u
  • Cyclical and non-cyclical stocks can help diversify a trader’s equity portfolio. Get your guide to understanding these stocks here: https://t.co/h7BKTd2J8N https://t.co/ukOW0dWJxf
  • Beautifully put. https://t.co/0fBsmUH6Pb
  • Gold prices could claw back lost ground ahead of the non-farm payrolls report for November, buoyed by a dovish FOMC, falling real yields and rising inflation expectations. Get your $XAUUSD market update from @DanielGMoss here:https://t.co/3mqut0yQIQ https://t.co/nfyycibwKM
  • Recessions can devastate the economy and disrupt the fortunes of individuals, businesses, and investors. But economic decline in the business cycle is inevitable, and your trading can be defined by how you respond to crisis. learn how to prepare here: https://t.co/e4CnobJCss https://t.co/UWnLJHVPN4
  • Rather than focusing on earning a specific number of pips per day, traders need to focus on what can be controlled. In trading terms this relates to following a strategy perfectly, with no emotion or hesitation. Learn more here: https://t.co/6ZH026QLRN https://t.co/JJIyKh8r1l
  • That if you’re offended by what someone says on Twitter and that ruins your day, you live an extremely lucky life to be able to have that be your biggest problem for the day. https://t.co/H9KQjR3ViK
  • Myth or fact? One thing is for sure, there are a lot of misconceptions about trading. Knowing the difference between common trading myths and the reality is essential to long-term success. Find out about these 'myths' here: https://t.co/EDvQdHfIPm https://t.co/tl54v6sKkX
  • Moving averages are extremely popular due to its easy-to-use nature and multitude of uses when trading. What are some popular moving averages and how can you use them? Find out: https://t.co/ik0wQ3MLGE https://t.co/heAYoTMDeR
  • MACD who? The Moving Average Convergence Divergence (MACD) is a technical indicator which simply measures the relationship of exponential moving averages (EMA). Find out how you can incorporate MACD into your trading strategy here:https://t.co/ZNs4Qi8ieG https://t.co/UqZBBPZiOl
USD Strength Continues on Solid ISM Services PMI

USD Strength Continues on Solid ISM Services PMI

2020-02-05 14:59:00
Thomas Westwater, Contributor
Share:

ISM Services Talking Points:

  • ISM Services Index beat estimates for January
  • USD initially shot higher, but failed to follow through
  • Service sector pointing to continued consumer strength

The Institute for Supply Management released its monthly report on the US non-manufacturing/services sector Wednesday morning with the headline figure for January crossing the wires with a reading of 55.5, beating expectations of 55.1. The US Dollar initially shot higher as the report released but failed to follow through on momentum from a solid ADP jobs report released earlier today.

US Dollar Index (1-Min Chart)

DXY Chart

Chart Created by @FxWestwater with TradingView

Looking into the report, the services index saw new orders grow at a faster rate for January, with the series index rising to 56.2 from 55.3. Employment continued to grow, but at a slower rate, dropping to 53.1 from 54.8. Another notable highlight from the report is strength in business activity, marking its 126th month of consecutive growth and rising to its highest level since last February.

ISM Services Index

USD Strength Continues on Solid ISM Services PMI

Source: Bloomberg

The Coronavirus, which recently spurred volatility across markets, didn't appear to have much impact on the report. However, one survey participant did mention that they were monitoring impacts on medical supplies.

Labor markets have shown robust strength in recent years, and markets will now focus on Friday’s Non-farm payrolls report, expected to show the US economy adding 162k jobs for January. A close eye will also be on manufacturing employment, as the slump in the factory sector will likely continue, even as manufacturing PMI rebounded for January.

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

Contact and follow Thomas on Twitter @FxWestwater

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

DISCLOSURES