USD, JPY, EUR flows: EUR up JPY down after objectively soft ISM data

A mixed response to weaker than expected ISM data, with EUR/USD up but USD/JPY also higher. US yields are also up slightly. Objectively, it’s hard to see the data as anything but weaker than expected, although the price index rose slightly, and resilient prices might be a barrier to Fed easing. But if so, weak activity and sticky prices are not particularly good news for the equity market. So the rise in EUR/JPY that has followed the data seems unlikely to persist, and may reflect end of week squaring more than any fundamental news.