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ISM Service Survey Builds On Initial NFP Fade

CROSS ASSET

Broader markets hold on to the bulk of the dovish moves that initially developed from the deeper examination of the U.S. NFP print and then extended on the softer-than-expected ISM services survey. The softness of the employment component within the latter provided a particular source of concern (see our previous bullet for more on that).

  • A reminder that long positioning in the USD and short setting/long cover in bonds had seemingly been observed in the initial rounds of ’24 trade.
  • Yesterday’s U.S. labour market data will also have conditioned markets for a stronger-than-expected labour market report today.
  • This will be feeding into the pullback from hawkish session extremes, with the USD struggling.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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