Put me in the camp that the Powell-reversal yesterday was overdone anyway and that some month end flows pushed it too far. At the same time, I think there were some looking for a worse ISM number after the poor regional data. The price action since lends some weight to that theory. The S&P 500 reversed a small gain and is down 0.7%.
The US dollar has also clawed back some losses but that's after some huge moves, including a parabolic jump in cable.
Cable stalled at the August highs and that will be the spot to watch next. As for the US dollar, the focus will now shift to non-farm payrolls. Another strong jobs report could breathe some life back into the dollar but note that jobs are the most-lagging indicator so I'm skeptical of chasing a jobs-based dollar rally.
