US dollar under broad pressure
Friday’s rally in the US dollar is rapidly unwinding and that accelerated after the ISM manufacturing survey missed expectations.
Looking through the survey details, I tend to think the market is misreading it, if the takeaway is that demand is slowing. Every comment in the survey points to strong demand but problems in supply chains are growing due to materials shortages — particularly in semiconductors.
In any case, the mode is to sell the dollar at the moment and that’s boosted cable by 100 pips to 1.3920.
USD/JPY has erased the earlier gains and Friday’s climb. The pair is now down 30 pips to 109.00.