Manufacturing is picking up in the US: the ISM Manufacturing PMI rises to 59 points – very strong growth. Highest since 2011. New orders are high: 66.7 after 63.4 points – the highest since 2004. The employment component remained almost unchanged at 58.1 points.
USD/JPY tops 105, EUR/USD dips below 1.3120 and GBP/USD edges closer to 1.65. Update: after the initial move, the dollar returns to the previous levels.
The ISM purchasing managers’ index for August was expected to remain at around 57 points in August after 57.1 points in July. This is the first hint towards Friday’s Non-Farm Payrolls.
Prices paid are at 58 points.
Other figures:
- Construction spending is up 1.8%, double the early expectations.
- IBD/TIPP Economic Optimism is at 45.2, below 46.2 expected.
The dollar was strong before the publication, with EUR/USD around 1.3120, GBP/USD around 1.6520 and USD/JPY flirting with 105.
Earlier, the final manufacturing PMI by Markit was expected to confirm the initial strong read of 58 points. The actual number was 57.9 – a minor downwards revision.
Expectations have risen after strong regional figures from Philadelphia and Chicago, which saw a leap to 64.3 points. The manufacturing sector is smaller than the services one, but it is nevertheless important.
For reference, here is the preview: trading the ISM manufacturing PMI with USDJPY.
