🇺🇸ISM PMI Cycle Peak Precedes Dollar Turn Around: Cable FX Macro
- Rosbel Durán
- Sep 5, 2024
- 1 min read
An outperformance of services vs the manufacturing sector has historically been tied with periods of dollar strength. The chart below shows ISM services - manufacturing spread vs the Cable FX Macro Dollar Index
When the services' outperformance cycle peaks, historically, this has been followed by a turn around in the dollar. Our sample size is very small, and the relationship is only found in the post GFC period
ISM services outperformance peaked in January 2023, if history rhymes, we could see an extension of dollar weakness in the months ahead
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