FxPro Financial Services Ltd | Sep 02, 2021 09:29AM ET
Markets and economies are often on opposite sides of the barricades. They sometimes welcome weaker data as it suggests ultra-soft policy remains in place, just like now. But sometimes, it is necessary to look at the situation through the eyes of an economist. With this approach, weak data is a negative, and yesterday was something to look at.
The ISM manufacturing index rose from 59.5 to 59.9, higher than expected. But within the index, the employment component fell below the waterline to 49, reflecting contraction. The slowdown in price growth is shown by a 6.3 point drop in the corresponding element. Such figures create room for the Fed to take its time with the unwinding of stimulus.
Today it is worth keeping an eye on the weekly jobless claims data with heightened interest. The markets are waiting for a smooth improvement in the figures.
The FxPro Analyst Team
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