The Dollar is down for a second consecutive day (by 1% in aggregate, mirroring the rally in the S&P 500 which has extended to a fourth consecutive session), at time of writing. The Dollar has lost ground against all major developed market currencies, including the Euro, Sterling, Swiss Franc and Australian and Kiwi Dollars, which are all up between 0.7-0.8%.
The release of a far higher-than-expected US ISM non-manufacturing PMI print in July has arguably given impetus to these trends. This index of economic activity in the critical US service sector rose from 57.1 in June to a 15-month high of in July of 58.1. This again points to a rapid pace of economic recovery in July in the world’s largest economy, even if the labour market is only creating jobs at a relatively slow pace.
