Dollar moves higher on the back of better ISM data

The idea that good news is bad news, has traders reacting to the better-than-expected ISM manufacturing PMI. The index came in better-than-expected 52.8 vs. 52.0. Prices paid declined, employment increased as did new orders. The US jobs report is scheduled for tomorrow with expectations of 295K.

US yields have moved to the upside with the 10 year now up 8 basis points at 3.276%. A new cycle high for the 2 year reached up to 3.53%.

US stocks are lower. The NASDAQ is down -153 points at -1.3% 11661.76. The Russell 2000 is down -37.56 points or -2.04%. The S&P index is down -35 points at -0.89%. The stocks are working on their 5th down day in a row (started by Chair Powell's speech day at Jackson Hole).

The US dollar has moved higher:

• EURUSD is running away (to the downside - dollar bullish) from its 200 hour moving average at 0.99827, and is also back below the July swing low at 0.99515. The next target comes against the low for the week at 0.9913. The lows from last week came in at 0.9908 and 0.9899. The 0.99515 is a close risk followed by the 200 hour MA. Stay below keeps the bears in control.

• USDJPY: The USDJPY which is another high going back to 1998. The high reached 139.974, just below the natural resistance at the key 140.00 level. Get above that level would have traders looking toward the underside of the broken trend line which cuts across at 140.498 area.

This is what the USDJPY looks like on the monthly chart. The trend run to the upside since January 2021 has seen the pair move up over 36%. It will take a while to get above the 1998 high which comes in at 147.65. So get used to another high going back to 1998 if the pair continues its move higher.

GBPUSD: The GBPUSD correction off the low could not get back above the broken trend line and the price has pushed to a new low going back to March 2020. The low in 2020 reached 1.1403. The pair is approaching the natural support at the 1.1500 level.

USDCHF: The USDCHF moved to another high and is getting closer to the July high at 0.9885. The high price for today just reached 0.98423.