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ForexLive North American Wrap: Factories The Factor

|Includes: FXA, CurrencyShares Euro Trust ETF (FXE), FXY
  • ISM April manufacturing index 54.8 vs 53.0 exp
  • Employment 57.3 vs 56.1 prior
  • New orders 58.2 vs 54.5
  • Irish PM says a 'no' vote would cut off ESM funds
  • Fed's Evans likes more QE
  • Fed's Lockhart skeptical of efficacy of more QE
  • Fed's Lacker sees 3% growth this year
  • Fed's Fisher: No QE3 unless economy tanks
  • Fed's Williams: US likely to grow 2.5% this year
  • Fed's Plosser: Expects 3% growth, 7.8% unemployment at year-end
  • Hollande 53%, Sarkozy 47%
  • BOC's Carney: Tightening may become appropriate
  • S&P 500 hits one-month high, up 0.6% to 1406
  • DJIA closes at highest since Dec 2007
  • CAD leads, AUD lags on day

Just before the ISM release, EUR/USD (NYSEARCA:FXE) popped above stops at 1.3280 only to reverse to a session low 1.3204 before bids around the big figure kicked in. The first bounce was to 1.3225 but a run through buy stops at 1.3230 led to more, albeit modest, buying.

Most pairs followed a similar path, going from one session extreme to the other on the ISM headlines. GBP/USD fell to 1.6186 from 1.6248 while USD/CAD went from 0.9897 to 0.9832 and it was all consolidation from there.

USD/JPY (NYSEARCA:FXY) also jumped on the ISM data, above offers at 80.00/10 but capped by 80.30 with a sideways drift to 80.15 afterwards, partly on a weak US equity close. The swath of Fed-speak had little effect as all the characters stuck to their usual scripts.

AUD/USD (NYSEARCA:FXA) has been in slow recovery mode since the RBA cut, touching above 1.0350 briefly. Larger offers seen up around 1.04.