US Session – Dollar surges to 103 yen on strong ISM data
December 2, 2013 9:11 pm
The US dollar was the main focus of the US session today as the currency surged to 103 yen for the first time since May 22 on the back of upbeat ISM data.
The manufacturing index beat expectations in November to rise to 57.3 from 56.4 in October, compared to a forecast for a drop to 55.1. Last month’s figure was the highest level since April 2011.
Meanwhile, just before the ISM report was released, the final manufacturing PMI from Markit was released to also show an increase more-than-expected to a 10-month high of 54.7 in November from 51.8 in October. The final reading surpassed the flash estimate of 54.3.
The dollar gained 0.32% against the yen in the US session to end at 103.09.
The dollar will continue to be in focus this week as markets await the all-important nonfarm payrolls data due on Friday. The better the US data are, the higher the expectations for the Fed to taper and this is dollar-positive.
The dollar also strengthened against the euro, gaining 0.04% to 1.3536. Despite positive Eurozone manufacturing PMI data today, the euro eased against the dollar but gained against the yen on the data to end at 0.27% at 139.52 .
Most of yen’s weakness is due to the Bank of Japan’s ultra-loose monetary policies.
The ISM data triggered a sell-off in gold which fell to 1217.66, the lowest since July 7 and ended the day with a 2.5% loss at 1218.92.
The Aussie ended the day lower, giving up gains made on upbeat China PMI data as focus turns to the RBA policy meeting on Tuesday. The Australian dollar fell 0.5% to 0.9097.
The US dollar was the main focus of the US session today as the currency surged to 103 yen for the first time since May 22 on the back of upbeat ISM data.
The manufacturing index beat expectations in November to rise to 57.3 from 56.4 in October, compared to a forecast for a drop to 55.1. Last month’s figure was the highest level since April 2011.
Meanwhile, just before the ISM report was released, the final manufacturing PMI from Markit was released to also show an increase more-than-expected to a 10-month high of 54.7 in November from 51.8 in October. The final reading surpassed the flash estimate of 54.3.
The dollar gained 0.32% against the yen in the US session to end at 103.09.
The dollar will continue to be in focus this week as markets await the all-important nonfarm payrolls data due on Friday. The better the US data are, the higher the expectations for the Fed to taper and this is dollar-positive.
The dollar also strengthened against the euro, gaining 0.04% to 1.3536. Despite positive Eurozone manufacturing PMI data today, the euro eased against the dollar but gained against the yen on the data to end at 0.27% at 139.52 .
Most of yen’s weakness is due to the Bank of Japan’s ultra-loose monetary policies.
The ISM data triggered a sell-off in gold which fell to 1217.66, the lowest since July 7 and ended the day with a 2.5% loss at 1218.92.
The Aussie ended the day lower, giving up gains made on upbeat China PMI data as focus turns to the RBA policy meeting on Tuesday. The Australian dollar fell 0.5% to 0.9097.
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