Global macro overview for 06/12/2016:
The Institute of Supply Management reported its Non-Manufacturing Purchasing Managers' Index official figures on Monday. The ISM Manufacturing Index advanced to 57.2 points in November from the previous month's 54.8 points and that was the highest level since October 2015 (analysts anticipated the Index to come in at 55.3 in the reported month). Moreover, it was marked the 82nd straight month of growth in the sector. It is worth to mention, that any reading above the 50 point level indicates expansion in the sector, which accounts for more than two-thirds of the US economy. In conclusion, the majority of respondents expressed a positive view of the economy, which might be another weighty reason for the FED to justify the interest rate hike in December.
Let's now take a look at the US Dollar index technical picture in the daily time frame. The swing high at the level of 100.52 has been violated and new swing high has been established at the level of 102.06. Currently, the market is in the corrective cycle and it looks like the level of 99.13 will be tested soon. Nevertheless, the bulls are still in control over this market and when the corrective cycle is completed new highs are expected.
