US dollar falls after weaker ISM data

Yields has reversed into negative territory after the weaker than expected ISM nonmanufacturing PMI data. Prices paid was at the lowest level since May 2020. Employment turned into contractionary territory. New orders were lower as well. Not a good report.

Looking at US yields:

• 2 year 4.45% -5.4 basis points
• 5 year yield 3.801% -4.0 basis points
• 10 year yield 3.662% -3.1 basis points
• 30 year yield 3.862-2.1 basis points

At the start of the US session, the two-year was 10 basis points higher in the tenure yield was 9 basis points higher.

• 2-year yield 4.551% +4.9 basis points
• 5-year yield 3.905% +6.3 basis points
• 10-year yield 3.752% +5.9 basis points
• 30-year yield 3.941% +5.8 basis points

The USD has moved to lower with the decline in yields:

• EURUSD: The EURUSD moved back above the swing area between 1.0690 and 1.0704. The price also moved up to test the hourly moving averages. The 100 hour moving average is at 1.07127, and the 200 hour moving averages at 1.0721. The high price moved above the 100 hour moving average, but stalled right at the 200 hour moving average. The current price trades at 1.0715. A move back above the 200 hour moving average at 1.0721 would shift the bias back in the favor of the buyers.

• GBPUSD: The GBPUSD GBP/USD The GBP/USD is the currency pair encompassing the United Kingdom’s currency, the British pound sterling (symbol £, code GBP), and the dollar of the United States of America (symbol $, code USD). The pair’s rate indicates how many US dollars are needed in order to purchase one British pound. For example, when the GBP/USD is trading at 1.5000, it means 1 pound is equivalent to 1.5 dollars. The GBP/USD is the fourth most traded currency pair on the forex exchange market, giving it ample liquidity a The GBP/USD is the currency pair encompassing the United Kingdom’s currency, the British pound sterling (symbol £, code GBP), and the dollar of the United States of America (symbol $, code USD). The pair’s rate indicates how many US dollars are needed in order to purchase one British pound. For example, when the GBP/USD is trading at 1.5000, it means 1 pound is equivalent to 1.5 dollars. The GBP/USD is the fourth most traded currency pair on the forex exchange market, giving it ample liquidity a Read this Term move back above its 200 hour moving average 1.23987 and above the natural resistance at 1.2400. The price is moving toward the 100 hour moving average 1.24441. The high price after the data came in at 1.24318. The current price trades at 1.2414. With the price now between the 200 hour moving average of 1.23987, and the 100 hour moving average 1.24441, puts the payer in a more neutral technical area. The sellers had their shot. They missed thanks to the weaker than expected ISM data.

• USDJPY: The USDJPY USD/JPY The USD/JPY is the currency pair encompassing the dollar of the United States of America (symbol $, code USD), and the Japanese yen of Japan (symbol ¥, code JPY). The pair’s rate indicates how many Japanese yen are needed in order to purchase one US dollar. For example, when the USD/JPY is trading at 100.00, it means 1 US dollar is equivalent to 100 Japanese yen. The US dollar (USD) is the world’s most traded currency, whilst the Japanese yen is the world’s third most traded currency, resulting The USD/JPY is the currency pair encompassing the dollar of the United States of America (symbol $, code USD), and the Japanese yen of Japan (symbol ¥, code JPY). The pair’s rate indicates how many Japanese yen are needed in order to purchase one US dollar. For example, when the USD/JPY is trading at 100.00, it means 1 US dollar is equivalent to 100 Japanese yen. The US dollar (USD) is the world’s most traded currency, whilst the Japanese yen is the world’s third most traded currency, resulting Read this Term fell back below its 200 100 hour moving averages at 139.73 and 139.548. The current price trades at 139.33. The shift below those moving averages now will use those moving averages as risk defining levels. Stay below is more bearish.