The US manufacturing PMI was leaked and this forced the ISM to release it earlier. The figure stands at 52.7 points, below expectations. Employment drops to 52.7 points, from 55.5 in June. This is a worrying sign for Friday’s Non-Farm Payrolls.
The USD slides, with EUR/USDÂ climbing to 1.0980, USD/JPY dipping back down to 124, GBP/USDÂ regaining the 1.56 level, USD/CAD dipping from the highs and reaching 1.3130 and AUD/USD rising to 0.7280 from the earlier lows.
New orders actually rose from 56 to 56.5 and that counters the drop. However, other figures such as export orders and prices paid remained under the 50 point mark separating growth from contraction.
Earlier, Markit’s final PMI read for July stood on 53.8 points, unchanged from the initial read and the Fed’s favorite inflation number advanced to 1.3% y/y.
At the recent Fed decision, the central bank left all its options open towards the decision in September. The Non-Farm Payrolls for July published on Friday could provide some indication.
Before that, we have the ISM Non-Manufacturing PMI and the ADP NFP. It’s going to be a busy week. With thinner than normal activity in markets due to vacations taken by some traders, we could see extreme moves.
More: Why We Remain Strong USD Bulls in 3 Charts – Deutsche Bank
