US ISM Non-manufacturing: Activity remains solid in the services sector – Natixis

Sandeep Kanihama FXStreet Contributor

The US ISM nonmanufacturing remained at 57.2 in December, above expectations as noted by the analysts at Natixis.

Key Quotes

“Business activity and deliveries were little changed while the improvement in new orders was offset by the deterioration in employment. Once combined, ISM manufacturing and nonmanufacturing levels are consistent with US growth above the potential.”

“ISM non-manufacturing remained flat at 57.2 in December, above expectations (consensus: 56.8 / Natixis: 56.0). Business activity and deliveries were little changed. New orders rose to the highest level since August 2015, indicating that the activity is likely to remain strong in the near future. The decline in the employment component is consistent with our forecast of a moderate slowdown in NFP (we forecast 150K).”

“In short: ISM came in higher than expected, suggesting that the trend in the services sector is robust. Taken together with the ISM manufacturing survey released earlier this week, the current level of the composite ISM is consistent with a solid growth in the last quarter of 2016.”

Author

Sandeep Kanihama

FXStreet Contributor

Sandeep Kanihama is an FX Editor and Analyst with FXstreet having principally focus area on Asia and European markets with commodity, currency and equities coverage. He is stationed in the Indian capital city of Delhi.

GBP/USD hits multi-week tops around 1.3560

GBP/USD gathers fresh steam and advances to new three-month peaks near the 1.3560 zone on Friday. Cable’s sharp move higher comes after three daily drops in a row and follows the increasing selling pressure hurting the Greenback.

EUR/USD pops to fresh two-month highs, targets 1.1600

EUR/USD advances markedly, revisiting the upper 1.1500s for the first time since mid-June. The pair’s sharp uptick comes on the back of a strong retracement in the US Dollar amid BoJ intervention chatter and despite steady uncertainty in the Middle East.

Gold picks up pace, approaches $4,400

Gold rebounds toward the $4,400 mark per troy ounce on Friday, reversing the previous day’s pullback. The precious metal’s recovery comes as fresh and intense weakness keep weighing on the US Dollar, while traders keep assessing easing expectations of an imminent Fed interest rate hike and the situation from the Middle East.

Pi Network Price Forecast: PI extends consolidation as bulls eye $0.10

Pi Network (PI) price holds steady on Friday, maintaining a consolidating tone for three consecutive days. Mild retail strength in the PI token remains stable, with Open Interest above $9 million, while social buzz eases. PI token’s technical outlook is mixed, as bearish momentum wanes to neutral, with bulls eyeing the $0.1000 psychological level.

Weekly focus: Some relief in US inflation concerns

Actual inflation data for July came out as expected with a 0.1% m/m increase in headline CPI and 0.2% excluding food and energy. Annual headline inflation remains too high at 3.4% and means that wage earners are experiencing stagnating spending power at best, and core inflation is a bit higher than the inflation target of two percent would suggest.

Why is Crude Oil priced for a reopening the ships haven't made?

Fourteen vessels crossed the Strait of Hormuz on Tuesday. Before the war, the count ran near 120 a day. In the sessions since the waterway was publicly declared open, Brent has drifted back to $87 and West Texas Intermediate (WTI) to $81, both a little lower again on Wednesday, with daily momentum on each unwound from the top of its range in late July to the low twenties now.