ISM Non-Manufacturing PMI and Factory Orders Puts the Greenback in Focus

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Earlier in the Day:

It was a quiet start to the day on the economic calendar this morning. A number of key markets were closed for the day, including China and the Australian and New Zealand markets.

While a number of key markets were closed, the Japanese Yen was in action this morning.

For the Japanese Yen

The services sector was in focus this morning.

In March, the services PMI increased from 46.3 to 48.3, which was the highest reading since January 2020.

According to the March survey,

New business inflows fell at a softer pace in March, while falling for a 14^th consecutive month.
COVID-19 restriction continued to depress demand at the end of the quarter.
New export orders were also subdued and also fell for a 14^th month in a row.
Firms increased employment levels, however, in anticipation of a pickup in service sector activity.
The pace of job creation was the most marked since January 2020.
Average cost burdens rose for a 4^th consecutive month, with the rate of increase the quickest since January 2020.
While cost burdens were on the rise, average prices charged by firms declined.
Optimism towards the next 12-months rose to its highest level since May 2013.
Hopes of a successful vaccination program to end the pandemic fueled optimism at the end of the quarter.

The Japanese Yen moved from ¥110.657 to ¥110.655 upon release of the figures. At the time of writing, the Japanese Yen was up by 0.10% to ¥110.58 against the U.S Dollar.

Elsewhere

At the time of writing, the Aussie Dollar was up by 0.17% to $0.7623, with the Kiwi Dollar up by 0.03% to $0.7034.

The Day Ahead:

For the EUR

It’s a particularly quiet day ahead on the economic calendar. There are no material stats due out of the Eurozone today, with the major markets closed today.

At the time of writing, the EUR was up by 0.10% to $1.1771.

For the Pound

It’s also particularly quiet day ahead on the economic calendar. There are no material stats due out with the UK on holiday.

At the time of writing, the Pound was up by 0.06% to $1.3840.

Across the Pond

It’s a relatively busy day ahead on the economic calendar. ISM Non-manufacturing PMI numbers for March are due out along with February factory orders.

Finalized Markit service sector and composite PMI numbers for March are also due out.

Expect the market’s preferred ISM Non-Manufacturing PMI to have the greatest impact on the Dollar and market risk sentiment.

Away from the economic calendar, geopolitics and chatter from Capitol Hill will continue to be areas of focus.

At the time of writing, the Dollar Spot Index was down by 0.08% to 92.951.