IHS MARKIT FLASH PMI REPORT SENDS US DOLLAR, DOW JONES HIGHER
- EUR/USD value motion pivots 70-pips decrease in an enormous intraday reversal
- Dow Jones jumps about 1% increased as shares erase latest draw back
- US PMI knowledge launched by IHS Markit seems to have catalyzed the transfer
The US Greenback is surging whereas main inventory indices just like the Dow Jones push increased in rapid response to flash PMI knowledge simply launched by IHS Markit for November. The month-to-month PMI report crushed market forecast for each manufacturing and companies sector parts, which propelled the headline composite index studying to 57.9 and a five-plus 12 months excessive.
Advisable by Wealthy Dvorak
Introduction to Foreign exchange Information Buying and selling
US PMI REPORT (IHS MARKIT) – NOVEMBER 2020
Chart Supply: DailyFX Financial Calendar
This sparked an enormous reversal decrease by EUR/USD with spot costs sinking over 70-pips in response to the transfer. US Greenback power seems broad-based as USD value motion good points throughout main forex pairs. Likewise, the Dow Jones, S&P 500 and Nasdaq prolonged increased following better-than-expected PMI knowledge launch after gaining modestly on the New York opening bell.
| Change in | Longs | Shorts | OI |
| Day by day | 24% | -9% | 0% |
| Weekly | -1% | -6% | -4% |
Gold costs fell sharply whereas the DXY Index and Treasury yields superior. A notable uptick in enterprise exercise and employment detailed within the newest US PMI report possible supplies merchants with causes to be optimistic on america – notably in mild of much less encouraging PMIs out of the Eurozone.
EUR/USD PRICE CHART: 15-MINUTE TIME FRAME (20 NOV TO 23 NOV 2020)
EUR/USD value motion now trades down about 0.3% intraday and across the 1.1820-level, which roughly aligns with final week’s low. Failing to carry this potential technical assist stage might see EUR/USD promoting strain speed up towards the mid-point retracement of its month-to-date vary close to the 1.1760-mark.
That every one stated, it’s also value mentioning that the continuing inflow of US Greenback demand is probably going being exacerbated by a squeeze as EUR/USD longs unwind their positions after being caught offsides headed into the Thanksgiving vacation and month-end. Moreover, sturdy US financial knowledge might downplay the urgency of one other fiscal stimulus bundle or extra lodging from the Federal Reserve, which might present bullish tailwinds to the US Greenback and bearish headwinds to equities.
— Written by Wealthy Dvorak, Analyst for DailyFX.com
Join with @RichDvorakFX on Twitter for real-time market perception