JANUARY 2019 ISM MANUFACTURING INDEX: TALKING POINTS
ISM Manufacturing Index expands to 56.6 beating expectations of 54.2
All elements of the PMI confirmed enchancment
The report follows wholesome NFP numbers that counter current market fears over deteriorating US fundamentals
The ISM Manufacturing Index simply got here throughout the wires and the higher than anticipated information helps the US Greenback and shares rise this morning. The metric got here in at 56.6 in comparison with an estimate of 54.2 and final interval’s studying of 54.three which extensively missed expectations.
US DOLLAR INDEX PRICE CHART: 1-MINUTE TIME FRAME (FEBRUARY 02, 2019 INTRADAY)
The January PMI confirmed the US manufacturing sector expanded for the 29th consecutive month. The report was notably wholesome as all elements of the indicator grew extra quickly than the prior interval excluding costs. The info studying adopted strong job development introduced in January’s US Nonfarm Payroll report this morning regardless of a downward revision to December’s numbers.
US S&P500 INDEX PRICE CHART: 1-MINUTE TIME FRAME (FEBRURARY 02, 2019 INTRADAY)
The constructive financial information comes at an fascinating time because the Federal Reserve takes a 180-degree activate their financial coverage stance from hawkish to dovish which was most lately echoed by Fed Chairman Jerome Powell and the FOMC Assertion earlier this week. The pivot in coverage comes amid fears of slowing world development spilling over to the US economic system which may be adversely impacted by the current authorities shutdown. Though, American economists have been at midnight with out exhausting financial information like 4Q 2018 US GDP as a number of indicators are nonetheless delayed, the ISM Manufacturing Index exhibits that the US economic system stays on stable footing.
Written by Wealthy Dvorak, Junior Analyst for DailyFX
Observe on Twitter @RichDvorakFX
Take a look at our Training Middle for extra data on Foreign money Forecasts and Buying and selling Guides.