Breaking: Dollar extends gains after ISM Manufacturing PMI beats with 50.9

Yohay Elam FXStreet

The US ISM Manufacturing Purchasing Managers' Index has beaten expectations with a score of 50.9 in January, far above 48.5 expected. The components are also promising, with the New Orders Index jumping to 52 points, the Prices Paid figure reaching 53.3, and also the employment component is on the rise, climbing to 46.6 points.

The advance above 50 points means that the industrial sector is growing once again. Moreover, this is an encouraging clue toward Friday's Non-Farm Payrolls report.

The US dollar is rising across the board, wand EUR/USD has hit new lows at 1.1037. GBP/USD is trading closer to 1.30 and is already suffering from fears of a no-trade deal Brexit. USD/JPY is trading around 108.65.

EUR USD responding to strong ISM Manufacturing PMI February 3 2020

Financial markets are concerned about the coronavirus outbreak, but recent fears are unlikely to be factored by investors. They will probably be taken into account in February's data.

Other clues toward the NFP include the ADP Employment report and the ISM Non-Manufacturing PMI.

Author

Yohay Elam

FXStreet

Yohay is in Forex since 2008 when he founded Forex Crunch, a blog crafted in his free time that turned into a fully-fledged currency website later sold to Finixio.

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