ISM manufacturing overnight Tuesday was a shock:
The result prompted equity losses and the slump in USD/JPY.
TD analysts say to watch the services data (ISM non-manufacturing) on Thursday and warn of something similar if that number is weak also. Looking for a move for USD/JPY under 107, and even towards 105. Furhter, TD look for the spread between 10yr US and JGBs to narrow due to GPIF reclassification of its hedged portfolio (see this post yesterday for more).
