The USD moved lower today and was only surpassed by the CAD as the weakest of the major currencies.
The strongest to the weakest of the major currencies
The USDs decline was kickstarted by a weaker May ISM manufacturing which came in at 48.7 vs 49.6 last month. There has only been one ISM above 50.0 (indicative of growth) in the last year. Manufacturing has lagged but the market is sensitive to weaker than expected growth (at time). There is a fine line between slower growth which will minimize inflation, but not too low to lead to larger job losses, that will lead to a “harder landing” for the economy.
The US jobs report will give a view of the jobs market with expectations now pointing to 185K job adds up from 175K but below 200K. The unemployment rate which ticked up to 3.9% last month, is expected to remain unchanged at 3.9%.
The CAD was the weakest of the majors helped by…
