USD flows: ISM robust, with the grain but dollar focus elsewhere

US ISM data strong at 54.0 from 52.7 (mkt 53), with new orders up to 56.8. Prices paid off a little but still high at 82.1. The survey still reinforces the message of relative US resilience. Data goes with the grain of, but overshadowed by, the Iran driven action as the dollar continues to bounce from last week’s pullback. 

US2s up 7bp on the day now but even sharper squeezes in bond yields elsewhere after last week’s oil relief moves. The highest beta pairs and those with the strongest action last week tending to show the biggest reactions but EUR/USD also being pulled back towards tests of the range lows for the last 2 weeks too.