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ISM PMI mixed bag: Slight beat, prices paid down, employment up, new orders down
ISM PMI mixed bag: Slight beat, prices paid down, employment up, new orders down
As you saw with the reaction to the ADP report, markets remain hyper-sensitive to US data, especially now with the government shutdown creating a dearth pf key data.
Up next up
- S&P Global final MFG PMI
- ISM MFG PMI
See our Economic Data Calendar
Using crosses to trade spotFX
- GBPUSD 1.3485, EURUSD 1.1735, EURGHBP: .8703
- Market had more trouble absorbing GBP buying than EUR selling
- EURUSD following GBPUSD (higher) after EURGBP paused (sell order filled?).
- Takeaway: EURUSD selling was driven by EURGBP more than USD, thus the lack of follow through (bounced off 1.1716 support)
GBPUSD1 HOUR CHART
If I told you that there was a large order in the market to buy EUR and sell GBP would you be looking to sell EURUSD and buy GBPUSD, do the opposite or step aside as the order gets executed?
If I told you that there was a large order in the market to sell EUR and buy GBP would you be looking to buy EURUSD and sell GBPUSD, do the opposite or step aside as the order gets executed?
How You Can Use Currency Crosses to Trade Spot Forex
Euro Holds Above $1.175 as Inflation Picks Up and ECB Signals Steady Rates
The euro traded above $1.175 after Eurostat data confirmed an acceleration in Eurozone inflation in September, while the US dollar weakened following the start of the first US government shutdown in seven years.
Inflation rose to 2.2%, up from 2.0% in August and slightly above the European Central Bank’s mid-point target, as energy prices fell at a slower pace.
The data reinforced expectations that the ECB will hold off on cutting rates for now.
ECB Vice President Luis de Guindos said Tuesday that “the current level of interest rates is adequate,” adding that decisions will continue to be taken “meeting by meeting.” On Monday, board member Gabriel Makhlouf remarked that “we are near the bottom of the easing cycle.” This release marks the final inflation reading before the ECB’s October 30 meeting, where rates are expected to remain unchanged until new forecasts are presented in December.
EURUSD
Resistances: 1.17800, 1.18200 & 1.18300
Supports: 1.17150, 1.16850 & 1.16500
Drop below 1.16850 would indicate continuation of Down move towards 1.15350
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