The ISM manufacturing PMI data release for December came in below expectations (58.7) resulting in initial dollar weakness however, better than expected employment figures may favor the hawkish rhetoric currently flooding the market. Inflation on the other hand could be waning and the Fed’s fierce stance on curbing inflation may be untimely. As a rule of thumb, a print above 50 reflects and expanding manufacturing sector and vice versa which leaves the U.S. manufacturing sector in solid footing. All eyes turn to Non-farm payrolls (NFP) later this week for further guidance.
