The 4.7 point jump in the ISM manufacturing index is consistent with our call for a modest broadening in capital expenditures and manufacturing activity, though some year-end replenishing amid trade uncertainty could be exaggerating momentum. Prices at 59.0 is not terribly encouraging for the efforts to get inflation in check.
Author
Wells Fargo Research Team
Wells Fargo
EUR/USD comes under extra selling pressure, slipping back toward six-day troughs near 1.1800 at the beginning of the week. The pair’s decline comes in response to marked gains in the US Dollar, as investors continue to digest the so-called “Warsh trade” and assess the latest US ISM Manufacturing prints.
GBP/USD adds to Friday’s losses and retests the 1.3650 region on Monday. Indeed, Cable’s retracement reflects the ongoing solid performance of the Greenback, while traders also begin to turn their attention to the upcoming BoE meeting.
Gold remains under heavy pressure in quite a negative start to the week, hovering around the $4,600 region per troy ounce, down for the third consecutive day. The yellow metal’s decline comes amid strong gains in the US Dollar and a broad-based rebound in US Treasury yields.
Ripple (XRP) is trading above $1.60 on Monday, attempting to recover from last week’s sharp decline that tested support at $1.50.
The first full month of the year is behind us, and, honestly, it has been rather more dramatic than most had anticipated when toasting the New Year. We wrapped up last week with US President Donald Trump announcing his Fed Chair pick.
XRP rebounds from last week’s support at $1.50 but struggles below resistance at $1.77. Active addresses on the XRP Ledger dropped below 18,000 on Sunday amid risk-averse sentiment. Retail interest in XRP continues to decline, with futures Open Interest dropping to $2.81 billion.
