US ISM Manufacturing PMI beats estimates with 61.1 in September, dollar remains pressured

Yohay Elam FXStreet

The US ISM Manufacturing Purchasing Managers' Index has come out at 61.1 points in September, above 59.6 expected and 59.9 in August. The Prices Paid component exceeded estimation with 81.2 points, more than 78.5 projected. The New Orders component also surpassed projecting with 66.7 points.

On the other hand, the Employment Index missed forecasts with 50.2 compared with 50.9 expected, but above 49 recorded back in August. The 50 level separates expansion from contraction. The ISM Manufacturing PMI is the first hint toward next Friday's Nonfarm Payrolls, which is critical for the Federal Reserve's tapering announcement.

The US dollar is on the back foot on Friday amid an improving market mood that is unfavorable for the US dollar. EUR/USD is changing hands at around 1.16 and GBP/USD above 1.3550.

Earlier, Markit's final Manufacturing PMI came out at 60.7 compared with 60.5 originally reported. Core Personal Consumption Expenditure (Core PCE) rose by 3.6% YoY in August, as expected. It is the Federal Reserve's preferred gauge of inflation.

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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