ISM non-mfg report

Sell-off just before ISM non-mfg report suggests market was well positioned for stronger-than-expected headline figure and boost in prices index, which indicates inflation. Long-end Tsy futures sustain modestly negative prices, having hit session lows before the data. Shorter-term 2008-09 Eurodollar futures recently down as much as 2 BP. Fed-funds futures barely budge, with Nov contract still pricing in about 40% chance for FOMC to raise funds rate to 2.25%, from 2%, at Oct. 28-29 meeting. (HLP)

USD fluctuates in a tight range after the release of May non-manufacturing ISM report, but no major movement in the knee-jerk phase. USD up a tad vs EUR, JPY. Forex markets are largely on hold ahead of the ECB Thursday and US employment report Friday. EUR/USD recently at 1.5436 from 1.5461 late Tues, while USD/JPY at 105.16 from 105.16. EUR/JPY at 162.32 from 162.58, according to EBS. GBP/USD at 1.9552 from 1.9645, while USD/CHF at 1.0419 from 1.0418. (RJF/YUS)

Gilts rebound Wednesday, recouping some of Tuesday's steep price declines, after weak domestic economic data point to slower growth, casting doubts over the BOE's ability to deliver a tighter monetary policy. Allied to weak Nationwide consumer confidence index and CIPS services PMI data, investors' heightened risk aversion reinforces the rally. September gilts trim gains on profit-taking and position-squaring ahead of BOE interest rate decision Thursday. The bank is widely expected to keep rates unchanged at 5.0%. September gilts +0.65 at 106.00, session high at 106.16. 10-year gilt +0.696 at 100.463, yielding 4.94%. (KJE)

2 comments:

  1. Blogger says

    ForexTrendy is a state of the art application capable of determining the most reliable continuation chart patterns. It scans through all the forex pairs, on all time frames and analyzes every possible breakout.


    Blogger says

    eToro is the ultimate forex trading platform for novice and pro traders.