The euro is getting no benefit from sharply lower yields in Spain and Italy today but the dollar is getting a boost from a rise in US yields. US 10-year note yields have risen a further 7.7 bp this morning bring the yield to 2.058% from near 1.90% little more than a day ago. Hopes for QE3 have been replaced by hopes for faster US growth. A strong ISM figure today would amplify those hopes.
54.6 is the consensus forecast for ISM.
EUR/USD is flirting with the 100-day moving average at 1.3295 as we write. There is lots of chart congestion down through about the 1.3260 area.
