The US dollar managed to hold steady overnight despite a deterioration in the manufacturing ISM adding to the general outlook for slowing US growth, and EURUSD traded in a 1.2746 to 1.2799 range while USDJPY traded 116.57 to 117.17.
US 2 and 10-year Treasury yields fell by a further 3 and 5 bp respectively although Eurozone yields managed to fall by a similar magnitude yesterday.
The manufacturing ISM fell to 51.2 in Oct from 52.9, while the prices paid index dropped to 47.0 from 61.0, and is now signalling falling prices.
Meanwhile, the ADP national employment report showed an estimate for 128k in jobs to be added in October versus 78k, higher than market expectations of 108k in jobs. Since mid-October, the USD has declined broadly in line with a deterioration in 2-year yield spreads over other G10 currencies.
With this week's key Japan event risks having passed yesterday with no significant impact on Japanese yields and BOJ expectations, the carry environment appears poised to remain healthy in the near-term, which should also support the USD.
Todays Data - unit labour costs are due at 1330 GMT as are the weekly jobless claims, and factory orders are due at 1500 GMT. Fed President Fisher speaks at 1700 GMT, but the topic does not seem conducive to market moving comments.
US 2 and 10-year Treasury yields fell by a further 3 and 5 bp respectively although Eurozone yields managed to fall by a similar magnitude yesterday.
The manufacturing ISM fell to 51.2 in Oct from 52.9, while the prices paid index dropped to 47.0 from 61.0, and is now signalling falling prices.
Meanwhile, the ADP national employment report showed an estimate for 128k in jobs to be added in October versus 78k, higher than market expectations of 108k in jobs. Since mid-October, the USD has declined broadly in line with a deterioration in 2-year yield spreads over other G10 currencies.
With this week's key Japan event risks having passed yesterday with no significant impact on Japanese yields and BOJ expectations, the carry environment appears poised to remain healthy in the near-term, which should also support the USD.
Todays Data - unit labour costs are due at 1330 GMT as are the weekly jobless claims, and factory orders are due at 1500 GMT. Fed President Fisher speaks at 1700 GMT, but the topic does not seem conducive to market moving comments.