On the face of it, right now’s miss within the US ISM manufacturing survey wasn’t an enormous one. It was at 46.7 in comparison with 47.6. However I do not assume the consensus was correct for what the market was anticipating because of an especially sturdy regional print yesterday. That had folks speaking a couple of 50 studying so among the promoting within the US greenback afterwards might have been associated.
We additionally acquired some feedback from Chicago Fed President Goolsbee who mentioned inflation is coming down ‘precisely’ as we would like and that the labor market has gotten to a greater place. These are hints of a pivot to dovish, or no less than impartial. The large occasion is on the high of the hour with Powell.
Treasury yields are decrease now and that is despatched USD/JPY all the way down to 147.36 with the market now pricing in 121 bps of cuts subsequent yr.
USDJPY 10 minutes
