USD flows: USD slips on weaker ISM services

The US ISM services survey has come in weaker than expected, contrasting with the S&P PMI services survey, which showed unusual strength in November, even after the modest downward revision. These two surveys correlate poorly in general, but the November data is even more out of line than usual. The USD has fallen back after the ISM data, with US yields now not much changed on the day. USD/JPY may yet have some more downside scope, as yield spreads suggest gains above 150 are overdone. Focus will now shift to the French no confidence vote. If Barnier loses it as expected, there is likely to be some modest dip in EUR, but with the government now expected to fall there would probably be more reaction if the government survives.