Debt and money markets have reacted much stronger to a very strong data from the ISM as compared to the forex market. Mark in 60.8, shows the main index was the highest since 2004, and the index of purchase prices have soared. In addition there was a sharp jump in the balance of employment, together with new and export orders. In total, this means quite a jump-start the year for the U.S. economy, although the correlation between manufacturing ISM and GDP, although it seems a strong, sometimes quite strongly violated (2004 and 2010, the first years were a good example).But market reaction spoke for itself. Dollar rally failed to gain support, but with the additional support of good reporting, it was a good rally stocks, raw materials, especially gold, looked far more circumspect. At the moment, it seems that the data are perceived as positive for the immediate prospects for global growth, but hardly able to move the Fed to this track, it is evident that the 10-yr reacted to the news much stronger than that observed in the two-year yield securities.
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