ISM Manufacturing beats expectation, USD strengthens! 

  • The Dollar Traded strong as Chinese manufacturing data sent stocks higher in Asia and Europe and this accelerated in the US session on better than expected August ISM data at 56.3 vs. 55.5 previously. We also released August ADP Employment at -10k vs. +19k forecast. In US stocks the DJIA traded +254 points higher closing at 10254 and the S&P traded +30 points higher closing at 1080. Looking ahead, Weekly Jobless Claims are forecast at 475k vs. 473k previously. Also tonight, Fed Chief Bernanke speaks. USDJPY price action yesterday was between 83.67 - 84.65

    The Euro traded strong as risk appetite pushed the single currency back above 1.2800 and the topside is now in focus after support was found in the last 2 weeks above 1.2500. July German Retail Sales are missed at -0.3% vs. 0.5% previously. EURUSD traded with a low of 1.2662 and a high of 1.2857 before closing at 1.2800. Looking ahead, Q2 GDP is forecast at 1.0% q/q. Also released, ECB rate announcement is forecast at 1.0%. 

Currency to watch out for: EURUSD & USDJPY

  • § The EURUSD pivot point is at 1.2690 with a preference to enter into Long positions at 1.2690
  • § The USDJPY pivot point is at 84.10 with a preference to enter Long positions at 84.45               

Today's calendar and market movers:

  • § United Kingdom Nationwide House Price for the month of Aug is forecasted to be -0.2%
  • § Euro Zone GDP for Q2 is expected at 1%
  • § Euro Zone Rate Announcement for September is expected to remain unchanged at 1%
  • § United States Jobless claims for the week is expected at 475K
  • § United States Pending Home Sales for July is expected to drop by -1% 

Equity Markets: 

  • US equities closed positive yesterday with the S&P500 at 2.95% and the DJIA at 2.54%. The European bourses were positive with the FTSE up 2.56% the DAX and the CAC closing at 2.52% and 3.65% respectively. The NIKKEI and the HSI at the time of writing is 1.54% and 1.27% respectively.