US Manufacturing Plants A Gap In USD/JPY
Skerdian Meta • 1 min read
Even the US manufacturing data came out petty positive today, so it´s been a positive day for global manufacturing, which puts the UK on a separate ship.
US manufacturing PMI jumped from 54.9 to 57.7, which is another decent jump after the Chicago PMI last Friday. Besides that, new orders and employment jumped considerably as well, but prices fell.
That´s exactly the opposite of what´s happening in the UK; in the US the economy is expanding with inflation being a bit soft, while in the UK the economic data has been disappointing while inflation is surging.
Anyway, this was a great reading and has made USD bully a bit more confident. Last night, USD/JPY opened with a 20 gap lower which was filled overnight.
I don´t think the gap will be closed today
After the US manufacturing numbers, this forex pair formed another gap, this time to the upside. The uptrend is too strong today so I don´t know if the gap will be filled, but we must keep that in mind.
By the way, the positive data from the US is accumulating, just like in the EU, so we might see a reversal in USD after months of declining, although inflation has to pick up as well in order for the FED to start thinking seriously about another rate hike before December.
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