The dollar continues to rally, despite long rates continuing to fall sharply (below 4.20% for the 10-year).

The Dollar-Index is back up 0.35% at 104.00 and the greenback is even up 0.5% against the euro at 1.0785.
This firmness is confirmed 72 hours ahead of the eagerly-awaited monthly employment report (the 'NFP' to be published on Friday)... at a time when investors are convinced that job creation will begin to reflect an economic slowdown which will confirm the FED's intention to 'pivot' and change its rhetoric... a prelude to a possible rate cut as early as March 2024.

The day's US figures explain neither the euphoria in T-Bonds, and even less the Dollar's firmness: growth in the US service sector rose more than expected in November, according to the monthly survey by the Institute for Supply Management (ISM).
The index stood at 52.7 last month, compared with 51.8 in October, while economists were expecting a figure of 52.3.

The component measuring employment rose to 50.7, compared with 50.2 last month, while the new orders sub-index remained stable at 55.5.
The index linked to inventory-related sentiment rose to 62.2, after 54.4 in October, a level deemed far 'too high by the Institute for Supply Management.

The S&P Global Composite PMI is revised 'unchanged' to 50.7, in line with its flash estimate and its October level.

The Institute highlights a return to new business growth in services and an easing of cost pressures.

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