Investors await the US ISM Manufacturing PMI that might impact forex and equities markets mood and will provide a clue about Friday’s jobs report. Analysts expect an increase to 50.1. September reading was at 49.10 a decrease of 2.1 points from the July reading of 51.2, showing the first month of contraction in the manufacturing sector since January 2016 as trade tensions between US and China weighs on employment and new orders. The 12 month average for the index stands at 54.4 with the highest reading at 59.5 in September 2018 and the lowest reading at 49.10 in August 2019.
A reading above 50 will be supportive for the US dollar while if the actual figure beat the 50.10 analyst’s expectations could drive DXY to fresh yearly highs. The USD index might test resistance at the 99.89 high from May 2017 before an attempting to reach to 100 psychological barrier. A weaker number will have negative implications for USD and might drive EURUSD up to 1.0947 yesterday high.Don’t miss a beat! Follow us on Telegram and Twitter.
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