The US dollar fell Monday after data showed ongoing weakness in the US manufacturing sector, pushing USD/JPY to a two week low.
The rally in US indices appears to be cracking – the S&P 500 and the Dow Jones Industrial Average (DJIA) have broken below key support, while the Nasdaq 100 index looks vulnerable amid a potential bearish formation.
The pull-ahead in US retail sales validates soft landing hopes but also leaves room for rates to be kept high for longer, with market sentiments seemingly placing their focus on the latter.
Markets believe the Bank of England has much more rate-rising to do than the Fed now if prices are to be held in check