The market looked like it might be at the breaking point heading into ISM services, with evidence mounting of a resilient economy and firming inflation pressures.
Then the data hit and it showed the opposite. The ISM services index missed estimates and the prices paid component plunged to the lowest since March 2020.
Now confusion reigns. Treasuries had been breaking higher but now they’ve been reeled in and the US dollar is sinking.
EUR/USD is trading at a six-day high, despite an undershoot in eurozone inflation.
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