USD flows: Supported by strong PMIs

USD well supported on better than expected US PMIs, particularly compared to the weaker numbers in Europe this morning. However, the impact has been seen most on USD/JPY, which continues to extend its seventh consecutive day of losses, while EUR/USD is not much changed. In spite of the strong data, US yields aren’t higher on the day, and equities are lower, so the disconnect between FX, equities and bond markets continues. The USD/JPY uptrend is very hard to oppose as it appears very resilient to news, but for this reason intervention seems inevitable soon.