ISM manufacturing slows more than expected.

Having unexpectedly been out of the house all day, I've arrived home to see US ISM manufacturing has contracted more than forecast, particularly prices paid. This is a 'bad news is good news scenario' and combined with last week's data, adds fuel to the 'soft landing narrative'. US yields and the dollar index are down, the USD has weakened accordingly.

Canadian PMI data released simultaneously to the US data, also slowed and makes a rate cut from the BOC very likely this week. The CAD has also weakened accordingly.

Looking at the 1hr charts, I feel like the 1hr candles are perhaps a little stretched (see photo) and I've missed the 'in the moment' opportunity. I'm currently waiting for 1hr support to form before feeling confident in a trade. At this moment in time I quite like a NZD CAD long (positive PMI data from china adds credence to a NZD long).

Alternatively, if everything recovers against the JPY, then the yen may become the short of choice.

I hope this all makes sense, feel free to email any questions: johnelfedforexblog@gmail.com