Global macro overview for 02/05/2017:
The US ISM Manufacturing data revealed a slight decline in this sector of the economy. Market participants expected a decline to 56.5 points, but the index fell to 54.8 points in April from 57.2 points previously and it was the weakest reading in four months. New orders slowed to 57.5 points from the previous reading of 64.5 points, though this was still a solid reading in historic terms. The production index increased to 58.6 points from 57.6 points. In conclusion, global investors expect the US manufacturing sector to slow, but there is still not enough evidence to fully support this assumption. Moreover, some experts think that the eurozone with its current pace of manufacturing activity might outperform the US during the next months.
Let's now take a look at the US dollar index technical picture on the H4 time frame. Since the interest rate increased in March, the index was slowly declining and recently it has made a new marginal low at the level of 98.68. Currently, the index is moving in a horizontal range between the levels of 98.68 - 99.36 and the bulls still cannot fill the lower gap. Market participants are waiting for more fundamental data (i.e.: FOMC statement, ADP unemployment or NFP Payrolls data) to trigger the next move.
