The ISM business activity index measuring production levels advanced by 4.4-points to 64.4. Readings above 50.0 indicate expansion and so the fact that gauges covering Production and New Orders are above 60.0 signifies continued economic strength.
As with the earlier ADP report, the report makes for curious reading. The Production reading added a tad to 64.6 indicating still robust manufacturing activity. However, the pace of New Orders fell at the fastest pace since January
Just when you think the worst is over concerns re-emerge. Once again Greece is in the spotlight being discussed along with the ramifications of their withdrawal from the euro. All this as the U.S. government still is shuttered.
The market assumption is that economic recovery leads to higher bond yields, which make gold expensive to hold. This would be true if investment funds were significantly long in gold, but they are not.
In my April column, I argued that 108.00 may be a realistic target for the USD/JPY. Since then, the pair has rallied to break above the 100.00 yen level for the first time since April 2009. So what’s next for this aggressive pair?