Dealers anticipated weak ISM data and they’ve gotten just that. The data came in at 36.2. a touch weaker than forecast. Stocks are down big, but were already weak headed into the number.
Risk aversion remains the predominant theme. GBP/JPY is the big loser today, helping weigh on both legs of the cross. Cable trades at session lows around 1.4910 while USD/JPY is just a tick or two above 93.56 lows. EUR/USD is somewhat supported by EUR/GBP buying.
The price component of the ISM fell to its lowest level since 1949, employment since 1991 and the manufacturing index since 1982.
