USD Breaking News: U.S. Dollar Fades on ISM Manufacturing PMI Miss

[OZER]

ISM PMI FALLS BUT POSITIVES SEEN IN OTHER METRICS
The ISM manufacturing PMI data release for December came in below expectations (58.7) resulting in initial dollar weakness however, better than expected employment figures may favor the hawkish rhetoric currently flooding the market. Inflation on the other hand could be waning and the Fed's fierce stance on curbing inflation may be untimely. As a rule of thumb, a print above 50 reflects and expanding manufacturing sector and vice versa which leaves the U.S. manufacturing sector in solid footing. All eyes turn to Non-farm payrolls (NFP) later this week for further guidance.

ISM MANUFACTURING PMI (DEC):



DOLLAR FUNDAMENTAL BACKDROP
POSITIVE START TO 2022 FOR THE U.S. DOLLAR

Yesterday, the IHS Markit PMI data was released for the U.S. and came in roughly in line with expectations (see calendar below).

MARKIT MANUFACTURING PMI (DEC):



Despite the slight undershoot, the dollar rallied on the back of higher U.S. Treasury yields due to increased Fed rate hike expectations. The first rate hike since 2018 is currently projected in March of this year according to the Fed's implied rates below. U.S. 10-year Treasury yields have extended their upside surge today giving further impetus to the greenback. Outlook for 2022 is likely to see yields push towards the 2% mark which could see a strong here for the DXY. Rate hike timing and communication will also be key to avoid market shocks because of the frequency expected due to rising inflationary pressures.

[Amirkwan]

Ask the 1500 new billionaires created during COVID to return the stolen currency?

[burgeon]

IT is really a stupid question to ask

[borchers]

THE BEST DECISION I EVER MADE IN MY LIFE WAS INVESTING IN FINANCIAL MARKET. TRUST ME GUYS, IT PAYS!

[ahward21]

All caused buy money printing

[yesimmexican23]

Trump Strong like ManlyMan Pootin & Talibans & Hugo Chavez & President Manchin

[killerti]

Wow this  is just full of crap

[warlos]

Citizens buy from the CCP so all the money goes to the war machine america sleeps nothing less .

[Matty242]

I think with 11 million job openings and empty shevles our economy has recovered enough. Raise the rates to stop this inflation BS.

[thimblerig]

 never had good things to say about Tesla.

[jtguidera]

Bitcoin is a hard asset, there is no bubble. Stock market is a bubble propped up by money printing

[xxkillcainxx]

Most bearish I've seen .  The last month of being wrong must be wearing on him.  Bitcoin $100K by Dec 31 is only about 60% wrong,

[digdigger]

Its because we've shifted our purchasing habits from services to goods... and it has nothing to do with handing out $9,000 to every family.

[koh]

Of course it can because the inflation like the supply chain issues are artificial methods of control.  We have a system that doesn't work, requires cash to prop it up,  and have an elite that has grown fatter on it.  The question really is will the population tolerate it anymore

[jackiscool]

Ok