WTF will be the head-scratching meme of the day. After spending weeks 'denying' facts and blaming weather for just how bad all the macro data in the US has been recently (US Macro index at six-month lows), Markit's US PMI just smashed expectations, printing at 56.7 (vs 53.6 exp.). All the main sub-indices from new orders to employment rose markedly suggesting all is well with the recovery and that weather has had no effect whatsoever. In fact, US PMI jumped the most on record in February. Of course, USDJPY was spanked on this 'great news' and that smashed US equity markets higher, filling the China PMI miss gap down.
Despite US Macro at six-month lows (blamed on the weather effect...
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US PMI is soaring... What Weather effect?
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It's all good - no weather here...
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And sure enough that's all we need to smack USDJPY back above 102 and fill the gap from China PMI on S&P futures...
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Charts: Bloomberg