Article / 03 October 2016 at 21:48 GMT

US Market Wrap: US dollar edges higher on PMI report

FX Consultant / IFXA Ltd


  • Nothing of note 

US Data released:

  • ISM Manufacturing PMI September (Actual 51.5 vs forecast 50.3) 
  • Markit Manufacturing PMI September (Actual 51.5 vs previous 51.4) 
  • Construction spending August (Actual -0.7% vs. 0.2%) 

EURUSD continued to vie for the “dullest currency in the G10” award. It dipped below the 1.1220 European low following the release of the stronger than expected ISM Manufacturing PMI report, touched 1.1204 and spent the rest of the day in a 1.1204-1.1220 band.

USDJPY rallied on the ISM data, peaked at 101.64 and then traded sideways in a 101.48-64 band. GBPUSD extended the Asia/Europe sell-off to 1.2814 and then tried to rally. That move was brief and GBPUSD is hovering at 1.2835. The Australian and Canadian dollars squeaked out gains fueled by rising oil prices.

Oil prices started the day with a bid, which wasn’t sustained. WTI dropped to $47.82 from $48.74 on profit taking. That moved reversed when it was reported that Iran was urging non-Opec countries to help stabilise the market. For some reason, oil traders saw that as a positive development and rushed to buy crude. WTI climbed from $47.85 to $49.00. Iran has called for non-Opec countries to join Opec in supporting the market. There wasn’t any evidence that US shale producers rushed to comply with the request.

US equity indices opened lower and finished that way as well. Ongoing European bank stock concerns and hawkish comments from Cleveland Fed President Loretta Mester contributed to the move lower.

 USDJPY rallied after the stronger than expected ISM Manufacturing PMI report to peak at 101.64. Photo: iStock


It won't be immediate but expect a move from gold, suggests TradingFloor contributor Clive Lambert in: Gold is coiling for something ... we have to be patient.

– Edited by Susan McDonald

Michael O'Neill is an FX consultant at IFXA Ltd. Follow Mike or post your comment below to
engage with Saxo Bank's social trading platform.

Missed a day? Here’s what we had to say during our and our Asia session  our regular European Morning Markets, From the Floor and Mid-session Europe.


The Saxo Bank Group entities each provide execution-only service and access to permitting a person to view and/or use content available on or via the website is not intended to and does not change or expand on this. Such access and use are at all times subject to (i) The Terms of Use; (ii) Full Disclaimer; (iii) The Risk Warning; (iv) the Rules of Engagement and (v) Notices applying to and/or its content in addition (where relevant) to the terms governing the use of hyperlinks on the website of a member of the Saxo Bank Group by which access to is gained. Such content is therefore provided as no more than information. In particular no advice is intended to be provided or to be relied on as provided nor endorsed by any Saxo Bank Group entity; nor is it to be construed as solicitation or an incentive provided to subscribe for or sell or purchase any financial instrument. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. As such no Saxo Bank Group entity will have or be liable for any losses that you may sustain as a result of any investment decision made in reliance on information which is available on or as a result of the use of the Orders given and trades effected are deemed intended to be given or effected for the account of the customer with the Saxo Bank Group entity operating in the jurisdiction in which the customer resides and/or with whom the customer opened and maintains his/her trading account. When trading through your contracting Saxo Bank Group entity will be the counterparty to any trading entered into by you. does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Bank Group and should not be construed as a record of ourtrading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication under relevant laws. Please read our disclaimers:
- Notification on Non-Independent Invetment Research
- Full disclaimer

Check your inbox for a mail from us to fully activate your profile. No mail? Have us re-send your verification mail