Daily FX Trading Update: US ISM Manu PMI Boosts Greenback

The US dollar was able to get a boost from upbeat ISM manufacturing PMI data, as the reading rose from 49.4 to 51.5 to reflect a return to industry expansion. The jobs component also showed a gain but was still indicating contraction, albeit at a slower pace compared to the previous month. There are no major reports from the US economy today.
The euro was mostly weaker against its peers, except against the pound and the yen. Economic data from the euro zone was mostly stronger than expected but the shared currency appeared to have gotten weighed down by the idea that the UK could leave the single market. Euro zone PPI and Spanish unemployment change data are due today.
The pound was the weakest performer for the day as Brexit jitters continued to weigh on the currency. Data from the UK was actually better than expected, as the manufacturing PMI rose from 53.4 to 55.4 to reflect a faster pace of industry growth. Construction PMI is due today and a dip from 49.2 to 49.1 could be seen.
The franc gave up ground to the dollar but was able to take advantage of the selloff in the European currencies and the Japanese yen. Swiss retail sales missed expectations as it posted a 3.0% drop versus the projected 1.6% fall. There are no reports due from the Swiss economy today.
The Japanese yen seems to be losing traction as bears are now trying to push for upside breakouts in yen pairs. Data from Japan came in weak over the weekend while today has the consumer confidence index due. A decline from 42.0 to 41.8 is expected.
Commodity Currencies (AUD, NZD, CAD)
The comdolls still managed to hold on to their gains to the dollar and push for new lows against the pound. Australian building approvals showed a smaller than expected 1.8% fall versus the projected 5.8% slump. New Zealand’s Global Dairy Trade auction is coming up in the next Asian session.
To contact the reporter of the story: Samuel Rae at samuel@forexminute.com
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Samuel Rae is an active retail trader across a variety of assets, including currencies, stocks and commodities and the author of Diary of a Currency Trader (Harriman House). His personal strategy focuses primarily on classical technical charting patterns with a fundamentally supportive bias, combined with a strict, risk management-driven approach to entries and exits. He is an Economics graduate from Manchester University, UK.