Tag Archive: eur

New orders need to keep growing – ISM’s Holocomb

FXStreet (Mumbai) – The Institute of Supply Management’s (ISM) manufacturing chairman Holocomb was on the wires stating the worst is not over yet and that new orders need to keep growing.

He added, “Slump in inventories having the most impact”. The headline ISM number bettered estimates, but stayed below 50.00, which indicates contraction of the activity in January.

Key points of the ISM report were

Purchasing managers index 48.2 Jan vs 48.0 Dec

Prices paid index 33.5 Jan vs 33.5 Dec (nsa)

New orders index 51.5 Jan vs 48.8 Dec

Employment index 45.9 Jan vs 48.0 Dec

Production index 50.2 Jan vs 49.9 Dec

Supplier delivery index 50.0 Jan vs 49.8 Dec

Order Backlog Index 43.0 Jan Vs 41.0 Dec (Nsa)

The Institute of Supply Management’s (ISM) manufacturing chairman Holocomb was on the wires stating the worst is not over yet and that new orders need to keep growing.

(Market News Provided by FXstreet)

US manufacturing ISM weaker, but… – ING

FXStreet (Guatemala) – James Knightley, analyst at ING Bank explained that US manufacturing ISM for January is a bit weaker than expected at 48.2 (consensus 48.4, previous 48.0) and marks the fourth straight sub-50 (contraction territory) outcome.

Key Quotes:

“However, the details are more encouraging with both production and new orders moving back above 50. The main weakness was in the employment component, which fell to 45.9 from 48.0 – the worst outcome since June 2009.

This suggests that the sector will be a drag on overall employment growth in Friday’s payrolls report and indicates the consensus is being a little optimistic in thinking that US manufacturing employment is only going to fall 2k. Indeed, we were seeing manufacturing employment fall by around 25-50k per month in 2009 when the ISM employment component was last at these sorts of levels. As a result, the overall payrolls consensus figure for Friday at 190k is looking a bit high too.”

James Knightley, analyst at ING Bank explained that US manufacturing ISM for January is a bit weaker than expected at 48.2 (consensus 48.4, previous 48.0) and marks the fourth straight sub-50 (contraction territory) outcome.

(Market News Provided by FXstreet)

USD/CAD wavers above 1.4000 after manufacturing data

FXStreet (Córdoba) – USD/CAD fell briefly below 1.4000 as the loonie strengthened slightly following Canadian manufacturing data, but quickly bounced back to the mid-1.40s zone.

USD/CAD slid to a session low of 1.3996 but failed to hold below the psychological level for long and climbed back to the 1.4050 area after mixed US PMIs reading. At time of writing, USD/CAD is trading at 1.4020

While RBC Canadian manufacturing PMI came in at 49.3 in January, separated data showed US Markit PMI dropped to 52.4 vs 52.7 expected. Meanwhile, the ISM manufacturing PMI came in line with expectations at 48.2.

USD/CAD levels to watch

As for technical levels, next supports are seen at 1.3946 (Jan 28 low), 1.3900 (psychological level) and 1.3869 (50-day SMA). On the flip side, immediate resistances could be found at 1.4061 (Feb 1 high), 1.4121 (Jan 28 high) and 1.4155 (Jan 27 high).

USD/CAD fell briefly below 1.4000 as the loonie strengthened slightly following Canadian manufacturing data, but quickly bounced back to the mid-1.40s zone.

(Market News Provided by FXstreet)

European Central Bank purchases €14.52 billion of government and agency bonds last week

The European Central Bank (ECB) purchased €14.52 billion of government and agency bonds under its quantitative-easing program last week.

The ECB bought €1.68 billion of covered bonds, and €1.80 billion of asset-backed securities.

The European Central Bank (ECB) President Mario Draghi hinted at a press conference in January that the central bank may add further stimulus measures at its meeting in March as downside risks rose.