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U.S. DATA AND ITS EFFECTS ON THE MARKET

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U.S. DATA AND ITS EFFECTS ON THE MARKET

U.S. DATA AND ITS EFFECTS ON THE MARKET

Dec 2 2014, 11.59 am GMT

STOCK.com

Yesterday, ISM Manufacturing PMI of US for November came out stronger than expected at 58.7 vs. 57.9 forecast. However, lower than 59.0 in October. Markets reacted with movements on Forex and Stocks.

Although PMI dropped from the previous three and a half-year-high of 59.0 in October, the growth in new orders and exports show the overall growth of the economy. The latest Manufacturing ISM Report On Business states that the US economic activity in the manufacturing sector expanded in November for the 18th consecutive month, and the overall economy grew for the 66th consecutive month as the reading above 50 already indicates expansion in the nation's manufacturing sector.

The Institute for Supply Management (ISM) said on Monday that the reason for the PMI fall is a slower pace of restocking. The hopes for the Christmas rush are fading as the National Retail Federation give an 11% decrease in spending for this year’s Black Friday and Cyber Monday combined. 

  US DATA ISM

Statistics Table taken from ISM website: Copyright of ISM

"The world economy may be faltering, but that is not stopping the U.S. economy from improving," said Joel Naroff, chief economist at Naroff Economic Advisors in Holland, Pennsylvania.

Other reports showed manufacturing growth across Asia and Europe easing in November. GBPUSD went up on the strong reports of the UK PMI at 53.5, forecast 53.1, previous 53.2.

 MT4 GBPUSD HOURLY GRAPH

GBPUSD US DATA

USDJPY also went up after US PMI reports and Moody’s downgrade of Japan, also in expectations of Japanese elections.

MT4 USDJPY GRAPH

USDJPY us data

Analysts are concerned with the possibility of weak global demand weakening U.S. manufacturing, after data released last week showed decline for the second straight month in a row in October business spending on equipment.

As a result, U.S. stocks were trading lower. Consumer stocks were also under pressure as the Thanksgiving weekend retail sales, traditionally a major shopping period, turned out to be a disappointment.

[USA 500] SP 500 HOURLY MT4 GRAPH

usa 500 us data

While a measure of factory employment fell slightly in November, it remained steady with firm job growth. Electrical equipment, appliances and components manufacturers said they continued to hire people.

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