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.

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
GBP/USD
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
More View more
Real Time News
  • GBPUSD trend may be resuming after trendline break - #GBPUSD chart https://t.co/EirIlTO60R
  • 🇯🇵 Consumer Confidence (JUL) Actual: 37.5 Previous: 37.4 https://www.dailyfx.com/economic-calendar#2021-08-02
  • 🇮🇳 Markit Manufacturing PMI (JUL) Actual: 55.3 Expected: 50.5 Previous: 48.1 https://www.dailyfx.com/economic-calendar#2021-08-02
  • Heads Up:🇯🇵 Consumer Confidence (JUL) due at 05:00 GMT (15min) Previous: 37.4 https://www.dailyfx.com/economic-calendar#2021-08-02
  • Heads Up:🇮🇳 Markit Manufacturing PMI (JUL) due at 05:00 GMT (15min) Expected: 50.5 Previous: 48.1 https://www.dailyfx.com/economic-calendar#2021-08-02
  • Trading bias allows traders to make informative decisions when dealing in the market. This relates to both novice and experienced traders alike. Start learning how you may be able to make more informed decisions here: https://t.co/rz7fqhRoMG https://t.co/Cp7rWEyFSQ
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 92.66%, while traders in Wall Street are at opposite extremes with 74.99%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/3A9cyM59SZ
  • Forex Update: As of 04:00, these are your best and worst performers based on the London trading schedule: 🇪🇺EUR: 0.03% 🇯🇵JPY: 0.00% 🇦🇺AUD: -0.03% 🇨🇦CAD: -0.04% 🇨🇭CHF: -0.04% 🇳🇿NZD: -0.08% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/BKGiHCcP2s
  • Gold Prices Risk Forming a “Double Top” Despite Yields Drop https://www.dailyfx.com/forex/market_alert/2021/08/02/Gold-Prices-Risk-Forming-a-Double-Top-Despite-Yields-Drop.html https://t.co/1eAb5dp3ew
  • Indices Update: As of 04:00, these are your best and worst performers based on the London trading schedule: Germany 30: 0.52% US 500: 0.51% FTSE 100: 0.49% France 40: 0.47% Wall Street: 0.43% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/PJsDVKC0H2
December ISM Manufacturing PMI Strongly Beats Expectations

December ISM Manufacturing PMI Strongly Beats Expectations

Izaac Brook,

Sub Header:

  • ISM Manufacturing PMI for December prints at 60.7 versus forecast of 56.6
  • Manufacturing sector is better prepared to handle rises in Covid cases
  • New Covid strain and new lockdowns in UK threaten bullish market sentiment
Advertisement

December ISM Manufacturing PMI Strongly Beats Expectations

Expectations of a slowdown in US manufacturing activity in December were calmed Tuesday morning when the December ISM Manufacturing PMI printed a strong beat of 60.7 versus a forecast of 56.6. November’s Manufacturing PMI printed at 57.5 versus a forecast of 58.0, and forecasters had expected a further fall in the index for December.

Monday saw IHS Markit report its Manufacturing PMI for December at 57.1 versus a forecast of 56.6, the highest print for the year. Tuesday’s ISM report helps to affirm that the manufacturing sector has learned how to cope with Covid without activity suffering.

ISM Manufacturing PMI 2020, Bloomberg, ISM, PMI, Purchasing Managers Index

Manufacturing PMI serves as an import proxy for US GDP data, giving markets a closer and more timely look at an important component of the US economy. PMI prints above 50 denote an expansion and below 50 denote a contraction.The ISM Manufacturing PMI dipped into contractionary territory in March and bottomed in April.

It remained contractionary in May as reopenings began and then crossed back into expansionary territory in June, where it has since remained. While the report fell between October and November, December’s print of 60.7 is a high for the year and shows continued expansion in manufacturing activity.

While manufacturing continues to fare well despite rising Covid cases, other sectors of the economy are facing challenges. Services, which account for roughly 75% of US GDP, are much more susceptible to Covid-related slowdowns. ISM Services for November printed at 58.0 versus a consensus forecast of 60.9, a sharp miss.

December’s Services data prints on Thursday and will provide markets with a closer look at the most important component of the US economy. The new, more contagious strain of Covid has been identified in countries around the world, including in the US. New national lockdowns in the UK and extended lockdowns in Germany increase the chances of another slowdown in global economic activity.

Dow Jones Price Chart: 1 – Minute Time Frame (January 5, 2021)

Dow Jones, DJIA, 1 Minute Price Chart, ISM Reaction

Chart Prepared by Izaac Brook, Source: TradingView

As the US industrial’s index, the Dow Jones Index is likely to see a reaction to Manufacturing PMIs. The Dow rose by around 30 points following the strong print. However, the market’s overall reaction to the ISM print was relatively muted. Monday’s Markit ISM beat may have caused a potential PMI beat to already be priced in.

Either way, the DXY fell to a fresh two-year low Monday but traded in the green this morning. It rose on the strong print but quickly returned to its pre-print level. As today’s session advances, markets will focus on the results of the Georgia Senate runoffs, which will determine whether the Democratic party will hold a majority in the Senate for the first two years of the Biden administration. Such a result could significantly change the market expectations surrounding the new administration.

--- Written by Izaac Brook, DailyFX Research Intern

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

DISCLOSURES