3 Sep 2013
Flash: USD braces for impact ahead of key data – TD Securities
FXstreet.com (Lisbon) - According to the TD Securities Team, the markets are looking for the ISM Manufacturing Index to pull back from 55.4 to 54.0 in August, which is in line with our expectations.
Key quotes
“Much of the down-drift in growth momentum should come from the fall-off in the pace of growth in production activity, which should fall from a near-decade high print of 65.0 to around 60.0. Similarly growth in new orders should slip from its two-year high mark, while employment growth should slip slightly.”
“Despite the reduction in the pace of manufacturing sector activity the overall tone of this report should remain constructive, underscoring the narrative of a sustained improvement in overall economic conditions.”
“This should yield an overall positive effect on the USD, which now is hawkishly keen on any data releases ahead of Nonfarm payrolls and the looming Fed meeting.”
Key quotes
“Much of the down-drift in growth momentum should come from the fall-off in the pace of growth in production activity, which should fall from a near-decade high print of 65.0 to around 60.0. Similarly growth in new orders should slip from its two-year high mark, while employment growth should slip slightly.”
“Despite the reduction in the pace of manufacturing sector activity the overall tone of this report should remain constructive, underscoring the narrative of a sustained improvement in overall economic conditions.”
“This should yield an overall positive effect on the USD, which now is hawkishly keen on any data releases ahead of Nonfarm payrolls and the looming Fed meeting.”