Join +750K new investors every month who copy stock picks from billionaire's portfoliosSign Up Free

Services ISM, Clarida Shake Yields Up

Published 08/05/2021, 01:55 AM
Updated 07/09/2023, 06:31 AM
USD/JPY
-
NZD/USD
-
XAU/USD
-
DX
-
GC
-
US10YT=X
-

Just as falling bond yields were becoming the path of least resistance, we got an upside surprise in the services ISM and hawkish comments from Fed vice chair Clarida combo.

The pre-FOMC Premium trade in NZD/USD is now over 100-pips in the green and Tuesday's Premium trade was up +80 pips until the bounce in yields. I informed the WhatsApp Broadcast Group (see below) that I remained long gold from 1812 until 1832; and that's where gold topped out before plunging after ISM and Clarida. 

Broadcast

Services ISM hit a fresh record at 64.1 with strong gains in prices paid (82.3 from 79.5) and employment (53.8 from 49.3). Clarida doubled down on taper and rates, saying the former could start as early as this year and the latter could lift by late 2022 or early 2023. 10-year yields spiked from under 1.14% to over 1.20%, dragging metals and JPY across the board. Clarida's comments could grease the wheels of USD bulls on any sign of beat in Friday's jobs figures, despite Wednesday's miss in the ADP

Did Clarida's comments tell us anything new? Apart from telling us he is one of the hawkish dots who made the shift at the June FOMC, not much. The division inside the Fed will likely grow wider, which will only lead them to compromise on taper in terms of size, pace and timing.

Latest comments

Loading next article…
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.