Highlights of the December US ISM manufacturing report:

  • Lowest since June
  • Prior was 58.7
  • Employment 56.8 vs 54.9 prior
  • New orders 57.3 vs 66.0 prior (lowest since May)
  • Prices paid 38.5 vs 44.5 prior

The comments in the report point the finger at oil

  • “Business has not slowed as of yet, but outlook is that business should start slowing, energy market related.” (Computer & Electronic Products)

The initial move is about 10 pips of US dollar weakness. There are some real concerns about US manufacturing and the past few months of durable goods orders reports have also been soft.

That said, I don’t think the market cares. If you don’t like the US dollar, where else are you going to go?