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ISM Manufacturing Expected 47, 47.1 Previous
Today’s US ISM Manufacturing number will be closely watched on the back of the PMI weakness we’ve seen recently. The US factory sector has been trending lower over recent months with the index moving deeper into negative territory last month. The recent trend of data has raised concerns over the health of the US economy as a whole and the impact that slowing US industry has on world trade. With a weak factory reading from China earlier in the week, a similar weak print out of the US will certainly put the focus back on global recessionary fears, leading stocks lower near-term.
New Orders & Employment On Watch
In particular, traders will be looking at the new orders and employment components of the PMI both of which give good insight into the projected health of the sector. A slowing in new orders shows that businesses are cutting back, likely anticipating a slowdown while a slowing of job growth will feed into potential risks of a lower number at tomorrow’s NFP.
Gold prices are a little softer ahead of the data against the backdrop of a higher US Dollar. If the greenback is seen rising on safe-haven demand linked to any weakness in today’s figures, this will no doubt drive gold prices lower near-term.
Technical Views
Gold
The sell off in gold from around the 2069.41 level highs has seen the market trading heavily lower. Price has recently broken below the 1973.51 level and is testing the bull channel lows. With momentum studies turned bearish, the risk is of a break below the channel, opening the way for a test of the 1871.04 level next.
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With 10 years of experience as a private trader and professional market analyst under his belt, James has carved out an impressive industry reputation. Able to both dissect and explain the key fundamental developments in the market, he communicates their importance and relevance in a succinct and straight forward manner.