It’s a soft start to the year with many traders extending the holidays until Monday but US dollar bulls have started off the new year the same way they finished 2014 with big gains across the board. Cable is the laggard so far, shedding 150 pips while the euro is one of the stronger currencies on the crosses but EUR/USD is still down 65 pips.
The story so far is the soft UK manufacturing PMI and not-quite-as-soft Eurozone PMI. Up next it’s RBC Canadian manufacturing data at 1430 GMT (9:30 am ET) followed by the US Markit data 15 minutes later and the ISM manufacturing report at 1500 GMT.
There have been some warning signals about US manufacturing over the past few months but it’s done nothing to stall the US dollar. I wouldn’t expect anything different with flows dominating to start the year.
ISM manufacturing
The consensus estimate is 57.5.
