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2 Jun 2014
Session Recap: The ISM of our age; Dollar on the offensive
FXStreet (San Francisco) - In a bizarre data release, the ISM institute reported and revised three times its May ISM manufacturing index to finally publish in line of market expectations at 55.4. USD/JPY initially reacted down, but it jumped after the first and second correction.
Overall, Monday was a pro-USD day as the dollar index broke the 80.60 key resistance and it consolidated above it. Then the EUR/USD and GBP/USD declined while the USD/JPY rallied.
The USD/JPY advanced for first time in four sessions as the pair jumped to 1-month highs around 102.50 amid US economic data and yields. "USD/JPY hourly chart looks slightly overbought albeit there are no signs the rally has come to an end," comments Valeria Bednarik from FXStreet.com. "Price stands well above its moving averages in the mentioned time frame, while breaking through 100 DMA first time since early April, currently around 102.40."
Meanwhile, the EUR/USD declined on Monday after three days but the pair remained well contained by the 1.3585 area. This time the euro closed below the 1.3600 area, but investors seem reluctant to take places ahead of the ECB meeting.
Overall, Monday was a pro-USD day as the dollar index broke the 80.60 key resistance and it consolidated above it. Then the EUR/USD and GBP/USD declined while the USD/JPY rallied.
The USD/JPY advanced for first time in four sessions as the pair jumped to 1-month highs around 102.50 amid US economic data and yields. "USD/JPY hourly chart looks slightly overbought albeit there are no signs the rally has come to an end," comments Valeria Bednarik from FXStreet.com. "Price stands well above its moving averages in the mentioned time frame, while breaking through 100 DMA first time since early April, currently around 102.40."
Meanwhile, the EUR/USD declined on Monday after three days but the pair remained well contained by the 1.3585 area. This time the euro closed below the 1.3600 area, but investors seem reluctant to take places ahead of the ECB meeting.