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US Dollar holds up on ISM, Sterling slips on Brexit uncertainty
The Federal Reserve turning dovish should be a trigger to sell the dollar, but apparently not quite so. Up against a raft of other even more dovish central banks, the economic outperformance of the US means that the US dollar continues to perform well. Yesterday’s ISM Manufacturing positive surprise helps to build a picture that suggests the US is not slowing sharply into the second quarter of the year. Treasury yields have jumped sharply higher in recent sessions, with the 10 year yield 13bps off its lows of last week and the yield curve now un-inverted between the 3 month/10 year duration. Positive US data is a ... (full story)