With the ISM surveys coming in at 54.3 for the non-manufacturing sector and 55.5 for the manufacturing sector can the Fed possibly reach for the panic button and attempt to ease monetary policy further?
No, it can’t and it won’t. Even if employment is weak on Friday, they don’t want to be seen as panicking.
The dollar is rallying on the view that the QE option is being taken off the table, at least for this meeting.
EUR/USD is triggering stops in the 1.3175/80 area as we write and USD/JPY is rallying to 86.10.
