Published: 2024-02-01T15:23:33.000Z
USD flows: USD firm after ISM
Senior FX Strategist
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ISM strong, especially the prices index, offsetting the higher claims data earlier
ISM manufacturing PMI coming in stronger than expected, offsetting the slightly higher jobless claims numbers earlier. In truth, the data has been mixed, with unit labour costs weaker than expected in Q4 due to stronger than expected productivity. But the high prices paid index in the ISM – the highest since April – is likely to prove USD supportive. The better US equity tone today also should be mildly USD positive. But EUR/USD is likely to stay close to 1.08. USD/JPY still looks to need clearer US equity weakness to move back in line with the 10 year yield spread.
