According to the recent ISM Non-Manufacturing report, the index dropped down to the lowest point since June last month. In particular, the index shrank from 59 points all the way down 56,9 points over the reporting period, Market Leader reports.
It should be noted that analysts had expected a less considerable drop - down to 57,5 points. Therefore, the actual figures turned out to go below those expectations. Still, a value above the 50 level still indicate expansion since this is the green zone for the indicator.
At the same time, the U.S. rate of unemployment is reported to stay around the lowest level since 2008 – 5,1%. Theoretically, this fact may indirectly indicate a more favorable economic situation in the country after the recovery seen in the local labor market.
It is important to keep in mind that the Fed considers the labor market to be one of the key indicators helping the central bankers to make up their mind regarding the Fed’s money-and-credit policy. Despite the reassuring employment figures, the Fed is not in a hurry to start raising the interest rates even thought most of the FOMC members od not deny the possibility of raising the rates later this year.
FOREX
Meanwhile, the U.S. Dollar keeps on developing its reactional move against the long-term rally. The index has been trading around 95,62 for a while, Masterforex-V Academy reports.
In case the “Greenback” keeps on losing its value against a basket of other majors, the price may find support around the bottom of the ascending MF sloping channel as well as the 92,52 local low. At the same time, we can count on a further rally only if the price succeeds in breaking and consolidating above the following major levels of resistance – the top of the descending MF sloping channel as well as MF pivot 98,40, the way it is shown in the cart below, courtesy of Masterforex-V Academy.
