US ISM Non-Manufacturing PMI - Small Deviation Higher

This Afternoon at 15:00 GMT (10:00 EST) on Monday March 5th the ISM non-Manufacturing figures were released from the USA. Last week's Manufacturing PMI figures were actually quite lower on Thursday at 52.4 versus 54.5 expected which lead to sell off. These PMI figures have been coming out quite good from the USA in the past few months and have received alot of attention from the market who are all watching for signs of a recovery from the US.

Last month this figure was release in the aftermath of the NFP data and was a very good print, adding extra fuel to the already quite large rally that came on the back of the better NFP data. However this indicator in month's prior has caused whipsaw on smaller deviations and thus it is always best to wait for a good sized deviation of somewhere between +/-2.5 to 3.0 to get into a trade. Today's print was better but the only a +1.3 deviation.

Here is the data:

US ISM Non-Manufacturing PMI
Estimates- Median: 56.0 Average: 56.2 Low Estimate: 54.0 High Estimate: 59.0
Actual: 57.3 Prior: 56.8 No Revision

US Factory Orders
Estimates- Median: -1.5% Average: -1.5% Low Estimate: -3.0% High Estimate: +0.5%
Actual: -1.0% Prior: +1.1% No Revision

The Stock Indices have been best to trade on US data. Personally I watch the Futures, but an ETF or CFD are also options. Here is the 15 second chart of the EMini S&P 500 Future Contract, at the bottom is the Volume. There was a whipsaw initially which did work up higher in agreement with the deviation but it gave way to a further sell-off.

The DAX future has alot bigger moves than the EMini which is actually quite a sluggish instrument to trade unless there is some big news pushing it around. The whippyness was thus even worse on the DAX after this release, however it too followed the EMini up for some gains given enough wiggle room. This is a 15 second chart of the DAX Future.

However these gains were short lived and the drop was much more steep in the DAX than what was seen on the EMini. Here is the 1 minute chart of the DAX.

If you are stuck to forex then the CADJPY usually is quite well correlated to the Stock Indices. Here the CADJPY makes about 20 pips before falling over as again the major Indices did. Here is the 1 minute chart of the CADJPY forex pair:

This 1 minute chart of the USDJPY chart shows the pair lift about 15 pips. Just a few months ago we could not be sure the USDJPY would react reliably to US news, but in the past couple of weeks the pair has woken up from its hibernation and has found renewed upward momentum. A bit overbought now and probably due for a correction, but in the longer term we could see further gains in the pair up to 85.00 initially. Anyhow all this focus and attention in the market is getting more traders interested in the pair and thus it is in play and reacting better to news.