USD/JPY slumps after ISM manufacturing and Goolsbee

<p>On the face of it, today's miss in the US ISM manufacturing survey wasn't a big one. It was at 46.7 compared to 47.6. But I don't think the consensus was accurate for what the market was expecting due to an extremely strong regional print yesterday. That had people talking about a 50 reading so some of the selling in the US dollar afterwards may have been related.</p><p>We also got some comments from Chicago Fed President Goolsbee who said inflation is coming down 'exactly' as we want and that the labor market has gotten to a better place. Those are hints of a pivot to dovish, or at least neutral. The big event is at the top of the hour with Powell.</p><p>Treasury yields are lower now and that's sent USD/JPY down to 147.36 with the market now pricing in 121 bps of cuts next year.</p>

This article was written by Adam Button at www.forexlive.com.