U.S. Dollar Rallies

The dollar rallied following the June manufacturing ISM and May construction spending figures, where the former handily beat expectations, and the latter missed the mark, and the previous month was revised higher.

EUR/USD fell to 1.1360 from over 1.1370 as USD/JPY topped at 113.27, up from under 113.05. Wall Street is on session highs, while yields edged higher. Cable has tracked EUR/USD lower Monday, and is presently settled near 1.2950 with a net 0.6% decline on the day. EUR/GBP, by contrast, has been chopping net sideways in about a 30 pip range centered around 0.8770, which shows that Cable’s driver has been a generally firmer dollar rather than the European Central Bank downplaying of the tapering narrative or any impact from the U.K. manufacturing PMI miss.

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