ISM manufacturing index Aug 2022
ISM manufacturing index Aug 2022
  • Prior was 52.8
  • Prices paid 52.5 vs 55.5 expected (prior 60.0)
  • Production 50.4 vs 53.5 prior
  • Employment 54.2 vs 49.9 prior
  • New orders 51.3 vs 48.0 prior

This is a big surprise. Lots of good news here. The market is largely ignoring the dip in prices and focusing on the strong headline and that's lifted the US dollar to new highs on the day. USD/JPY is flirting with 140.00.

Comments in the report:

There isn't much to fret about in those comments and the thinking is that it's a green light for the Fed to tighten more aggressively. What really stands out though is how much better the US economy is doing than elsewhere. That's the flashing signal for USD.