US PMI Expected to Be Overshadowed by Oil and Yield Moves
Today's US PMI data are likely to be ignored as markets focus on oil prices near $100, rising yields, and central bank policy, following a solid eurozone PMI release.
Traders are bracing for the US PMI release later today, but the data may be sidelined amid more dramatic moves in other markets. The eurozone posted a solid set of PMI figures earlier, which initially supported risk appetite.
However, attention has shifted to the sharp rise in oil prices approaching $100 per barrel, a surge in bond yields, and the implications for central bank policy. These factors are expected to dominate price action, leaving the US PMI as a secondary consideration.
The combination of higher energy costs and tighter financial conditions is weighing on sentiment, with FX markets particularly sensitive to the evolving yield dynamics.
Source: FXStreet Forex News