"February's ISM Manufacturing PMI surprised to the upside at 52.4, marking a second consecutive month in expansion territory. At the same time, the prices subindex reached its highest level since mid-2022, highlighting mounting cost pressures. Sticky inflation risks reduce the scope for near-term rate cuts and reinforce support for longer-dated Treasury yields."
"The parallel rise in oil and natural gas prices amid tensions around the Strait of Hormuz further intensifies inflation concerns. Higher energy costs risk slowing the pace of disinflation, keeping core measures elevated and anchoring yields higher. Additionally, Fed cut expectations have subsided to a certain extent."
"The Dollar climbed to its highest level in six weeks on Tuesday as investors rotated into safe-haven assets following the latest geopolitical developments in the Middle East. The latest economic data also provided support to the greenback."
The dollar climbed to its highest level in six weeks as investors sought safe-haven assets following geopolitical developments in the Middle East. Economic data bolstered the greenback, with February's ISM Manufacturing PMI expanding to 52.4, marking a second consecutive month of growth. The prices subindex reached its highest level since mid-2022, signaling mounting cost pressures. Rising oil and natural gas prices amid Strait of Hormuz tensions further intensified inflation concerns, reducing the likelihood of near-term rate cuts and supporting longer-dated Treasury yields. Fed cut expectations have moderated, with upcoming Fed commentary and Non-Farm Payrolls data expected to influence dollar momentum.
Read at London Business News | Londonlovesbusiness.com
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