The ISM’s (Institute for Supply Management) index rose to 56 from 52.2 in June. Economists only expected the index to rise a little up to 53.
The ISM report will likely contribute to the views of the U.S. economy strengthening this year.
Well, Should We Taper?
Is yesterday’s ISM report more evidence that the Fed should Taper?
Last week the unemployment rate did drop from 7.5% to 7.4%, but other not-so-obvious factors are worth considering:
“1) Participation rate decreased from 63.5 to 63.4
2) June figures were revised from 195k to 188k
3) Construction jobs were down 6k – not supporting a housing recovery as yet
This puts the taper temporarily in the fridge, and that will help the U.S. equity market. It had its effect on the USD as well, as the EURUSD jumped up a cent from 1.3190 to 1.3290.” – Chris
The EURUSD is heading back up to testing the 1.330 area once again.
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