U.S. business activity declines
- Volume of industrial orders (m/m) (Aug), fact -0.1%, forecast -0.2%.
- ISM non-manufacturing sector employment index (September), fact 50.4, previous value 53.1.
- ISM non-Manufacturing PMI (ISI) (Sept), fact 52.6, forecast 55.0.
Business activity in the non-manufacturing sector (PMI) from ISM in the USA has decreased to its minimum values since September 2016. This once again confirmed the market’s fears of a slowdown in the US economy and increased pressure on the American dollar.
Fig. 1. Non-Manufacturing PMI Index from ISM in the USA
Due to the aggravated risks of a slowdown in the US GDP, the US dollar index rushed down against a basket of competitors. In doing so, he also increased the likelihood of US Federal Reserve cuts and increased pessimism in the market as a whole.
The US dollar index updated the low at 98.70, confirming a downward trend, which will be limited by support levels: 98.60 and 98.50.
Fig. 2. The US dollar index chart. Current price – 98.70 (10-year US government bonds yield – blue line)
Read also: “Political risks are escalaying around candidates
for the prime minister’in the UK “
Hanzenko Anton
Earn with the help of the trade service on the news Erste News!
Topical articles of the trader’s blog:
- What indicators choose Forex traders (Part 2)
- Stock indices are ready to renew a historical high
- What indicators choose Forex traders (Part 1)
Current Investment ideas: