Just when you think....
The regional manufacturing data was not all that hot but the ISM Manufacturing index comes out better and higher than last month at 51.3 vs 50.3 estimate and 50.8 last month. Go figure. Construction spending...if a revision is 1.2% off, what good is it. The month change was horrible at -1.8% vs +0.6%. Car sales look weak to me. In other headlines just out Pimco makes capital preservation "Number one priority". In other words, try not to lose money. They also forecast global era of "insecure stability".
Anyway, the dollar has gotten a relief boost off the ISM data and is ignoring the Construction spending.
The EURUSD fell below the 200 hour MA at 1.1166 which was a support area for me today. The high correction has pushed to 1.1158. The 100 hour MA at 1.11469 is holding so far. The market water is muddy.
The USDJPY is trading back above the 109.41 low from last Thursday and the 109.46 low from Friday. The next stop is the 109.654 which is the 100 bar MA on the 4-hour chart. IN trading at the start of the day, the price bounced off that level.
The GBPUSD got close to the low from May 18 right before the ISM release at the 1.44029 (the low reached 1.44046). The price is trading back in the 1.4420s.
In the crosses, the EURGBP has come off from the resistance against the 0.77538 level (50% of the move down from the May high). The 100 day MA at 0.7738 is currently being tested. Moving and staying below that level will be the goal for sellers.
Overall, the ISM surprised. the construction spending is a head turner and not great news for that sector. Car sales...not so great.
