Something for your Espresso: Services week!
Morning from Europe
The ISM Manufacturing report was not the “banger” we had anticipated, but details from the report remain very upbeat for future readings.
Orders to inventory ratios continue to signal that restocking is likely going to help activity in Manufacturing in quarters ahead, regional surveys point to >50 readings for ISM manufacturing next month already and the activity index is showing firm signs of bottoming already.
This will continue to be good news for oil, curve steepeners and the USD relative to energy-importing peers.
Chart 1: ISM Manufacturing en route to >50 levels