USD flows: USD gains slightly on ISM

The USD is gaining modestly on a stronger than expected non-manufacturing ISM survey, which shows strength across the board except for the price index which has edged lower, although from high levels. The USD reaction is modest with US yields also only rising modestly and still lower on the day having dipped earlier in the session. Slightly lower than expected JOLTS job opening data for November are to some extent offsetting the impact of the ISM survey.

But we would favour some further USD gains here against the European currencies, with the latest European data on the soft side and the EUR looking toppy technically both against he USD and on the crosses.