USD neutral after data misses expectations last night
#OPINIONLEADER# #USDollarIndex#
FOREX FORECAST - ANALYSISFOREX MARKET NEWSUSD OVERVIEW
Byscott.andrews275
MAY 6, 2021
Key points from last night data release was
- US ISM Non-manufacturing PMI for April was 62.7 missing economists forecasts of 64.3 with March coming in at 63.7
- US ADP Nonfarm Employment change at 742k misses forecasts of 800k.
This chart of the US dollar index says it all really very flat price action waiting on the release of the NFP numbers at 20:30 GMT+8 time zone. These numbers out from last night don’t really tell the full story as looking into things more closely it’s clear that the US economy is returning to full capacity rapidly and the bullish case for the US dollar remains present. Key reasons for last nights data
- Production-capacity constraints
- Material shortages
- Weather and challenges in logistics and human resources continue to affect deliveries, which has resulted in a reduction of inventories.
The key thing to look for on Friday night is how much NFP beats expectations for a potential break out trade on the US dollar through this current level 91.30 resistance level.
USD index 06 05 2021
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