FX: ISM Manufacturing PMI: 53.5, strong employment – USD higher
The manufacturing sector is looking better in June, with 53.5 points, a bit above expectations. Perhaps more importantly for tomorrow, the employment component is up to 55.5 points, significantly above expectations and last month’s score of 51.7 points. Construction spending rose 0.8%, better than had been anticipated.
The US dollar is higher across the board, after an initial hesitant reaction.
EUR/USD has dipped below 1.1060, GBP/USD extends its slide to 1.5625, USD/JPY is already at 123.20, USD/CAD is at 1.2555, AUD/USD at 0.7655 and NZD/USD below 0.7650.
The ISM Manufacturing PMI was expected to advance to 53.1 points in June after 52.8 in May. This is the last hint towards tomorrow’s Non-Farm Payrolls, which are published on Thursday for a change.
The US dollar has been on roll thanks in part to the better than expected ADP NFP.
Construction spending was predicted to rise by 0.5% after +2.2% beforehand.
ADP showed a gain of 237K jobs in the private sector for the month of June, better than expected and raising the expectations for tomorrow. The early publication is due to the 4th of July weekend in the US.
