USD making gains as markets avoid risk

Daily Currency Update

After starting the day down yesterday against the basket of major currencies, the USD made gains throughout North American trading yesterday which have held through the overnight sessions.  The USD index (DXY) that started yesterday at just over 104 on the index is now up to 105.54.  The moves yesterday were in large part due to stronger ISM and factory order prints, making investors second guess a slower pace of rate hikes from the Fed.  The ISM Non-Manufacturing survey showed an increased confidence amongst purchasing managers at a rating of 56.5. This was both a beat of the expected 53.5 and an improvement from the previous month.  Trade Balance numbers came in early Tuesday showed a better than expected deficit of -$78.2B.