ISM Data boosts the dollar
ISM Manufacturing data for PMI and New orders came out better than expected and gave the dollar fresh momentum. Since the data release, the pound traded close to 1.15 against the dollar, the euro trading closer to the 0.99 level, while the JPY traded above 140 for the first time since 1998. The dollar index is trading at 109.80, while the 2yr US Treasury yield is quoted at 3.54%, its highest level since 2007. The rand has found life difficult this afternoon and is threatening to break the R17.30 handle at the moment, and with Payroll data out tomorrow, we could close the week at our weakest levels for the year.
Equities and Gold under pressure
Equities in the US have been under the pump, with all major indexes currently down over 1% as the market starts to price in a 100% chance of a 75bps hike by the Fed in September. Gold has lost over 1%, falling below $1,700 earlier today, while other metals have also found life tough. Brent Crude lost further ground during the day, with demand fears pushing oil prices down to $93.32 for Brent and $89.20 for WTI.
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