ISM fell even more than expected, dropping to 38.9 in October from 43.5 in September. Employment was very weak as well, to 34.6 from 41.8 in September. Prices paid dropped like a stone, to 37.0 from 53.5. Inflation, at least in the near-term, is not an issue.
Equities have turned lower and the risk-aversion trade is alive and well. Cable is below 1.5900 and EUR/USD is back down to 1.2750. EUR/JPY is closing in on support at the 125.45/50 area.
