US ISM MANUFACTURING: Actual
Whilst the manufacturing sector is deemed to be expanding above 50, yesterday's number of 51.6 it is certainly not at the rate most would like to see. Prior to the release the manufacturing sector appeared to be within a healthy expansion phase only for it to be bought back into question with such a differential between actual and expected. Not only is it well below its own 3-period MA but the trend since September 2009 is also down overall.
DIFFERENTIAL (Actual vs Expected)
To put htis into perspective below is the differential between actual vs expected. A positive reading denotes the release was better than excpected, wheras a neagative reading denotes the release was worse than expected. The differential makes it a little easier to see why the market may have been caught by surprise.
MONEY FLOW
Clearly a day of risk off as we see Bond Yields trade back to multi- month lows with the decline in equities continue to tumble. With Dow Jones and S&P500 back below the crucial support levels the equity markets are looking increasingly fragile...
DISCLAIMER: Trading in the Foreign Exchange market involves a significant and substantial risk of loss and may not be suitable for everyone. You should carefully consider whether trading is suitable for you in light of your age, income, personal circumstances, trading knowledge, and financial resources. Only true discretionary income should be used for trading in the Foreign Exchange market. Any opinion, market analysis or other information of any kind contained in this email is subject to change at any time. Nothing in this email should be construed as a solicitation to trade in the Foreign Exchange market. If you are considering trading in the Foreign Exchange market before you trade make sure you understand how the spot market operates, how Think Forex is compensated, understand the Think Forex trading contract, rules and be thoroughly familiar with the operation of and the limitations of the platform on which you are going to trade.
A Financial Services Guide ( FSG) and Product Disclosure Statements (PDS) for these products is available from TF GLOBAL MARKETS (AUST) PTY LTD by emailing compliance@thinkforex.com.au .The FSG and PDS should be considered before deciding to enter into any Derivative transactions with TF GLOBAL MARKETS (AUST) PTY LTD. Please ensure that you fully understand the risks involved, and seek independent advice if necessary. Also, see the section titled “Significant Risks” in our Product Disclosure Statement, which also includes risks associated with the use of third parties and software plugins. The information on the site is not directed at residents in any country or jurisdiction where such distribution or use would be contrary to local law or regulation. 2013 TF GLOBAL MARKETS (AUST) PTY LTD. All rights reserved. AFSL 424700. ABN 69 158 361 561. Please note: We do not service US entities or residents.