BREAKING: USD drops after big ISM miss

4:02 PM 5 January 2024

ISM services data for December was released today at 3:00 pm GMT. Market was expecting headline ISM index to drop slightly compared to November reading, driven by expectations of a drop in Prices Paid subindex. Factory orders data for November as well as revised durable goods orders report for November were released simultaneously to the ISM data.

Actual ISM data turned out to be much worse than expected. Headline index dropped from 52.7 to 50.6, driven by a plunge in Employment subindex. New Orders subindex also disappointed while Prices Paid subindex matched estimates. Factory orders data turned out to be better-than-expected while durable goods orders report saw no major revisions.

Services ISM for December: 50.6 vs 52.6 expected (52.7 previously)

  • Employment: 43.3 vs 51.0 expected (50.7 previously)
  • Prices Paid: 57.4 vs 57.3 expected (58.3 previously)
  • New Orders: 52.8 vs 56.1 expected (55.5 previously)

Factory orders for November

  • Headline: +2.6% MoM vs +2.1% MoM expected (-3.6% MoM previously)
  • Ex-transport: +0.1% MoM vs -0.1% MoM expected (-1.2% MoM previously)

Durable goods orders for November (final)

  • Headline: +5.4% MoM vs +5.4% MoM in first release (-5.1% MoM previously)
  • Ex-transport: +0.4% MoM vs +0.5% MoM in first release (-0.3% MoM previously)

Disappointing ISM services release triggered a weakening of the US dollar, with EURUSD jumping to a daily high above 1.0980 mark. Equities gained, with US500 moving above 4,750 pts - also a daily high.

Source: xStation5
Share:
Back

Join over 1 600 000 XTB Group Clients from around the world

The financial instruments we offer, especially CFDs, can be highly risky. Fractional Shares (FS) is an acquired from XTB fiduciary right to fractional parts of stocks and ETFs. FS are not a separate financial instrument. The limited corporate rights are associated with FS.
This page was not created for investors residing in Brazil. This brokerage is not authorized by the Comissão de Valores Mobiliários (CVM) or the Brazilian Central Bank (BCB). The content of this page should not be characterized as an investment offer in Brazil or for investors residing in that country.
Losses can exceed deposits