USD, JPY, EUR flows: USD eases after ISM

The slightly softer than expected nonmanufacturing ISM survey has taken the edge off USD strength, allowing USD/JPY to retreat without breaking the 34 year high of 151.97, and EUR/USD to trade above 1.08. Even though the data hasn’t had much impact on US yields, European front end yields have kept pace with the rise in US yields in the last day or two, and for now the 1.07 level in EUR/USD looks to be out of reach as a result. But now hard to see a major move away from 1.08 this side of the employment report.