Summary:

• ISM manufacturing PMI: 58.2 vs 58.4 exp. 58.7 prior
• Manufacturing prices also drop to 65.5 vs 67.0 exp and 68.5 prior
• USD fairly mixed ahead of tax bill vote

The last significant economic data to be released this week has seen the ISM manufacturing reading for November drop by a little more than expected. A reading 58.2 was below the 58.4 forecast and the previous reading of 58.7.

The decline was the second consecutive fall after the index peaked at 60.8 back in September and whilst it still remains at high levels historically speaking, traders will be watching closely to see whether the forthcoming reading are strong or whether there is a sustained decline similar to the one seen back in 2011. 

 The ISM manufacturing reading has dropped for consecutive months now. Source: XTB Macrobond

There was little by the way of a market reaction to the data with many participants seemingly waiting on further details on the Senate vote for the GOP tax bill. The US dollar is edging higher on the day but the gains are relatively small ahead of the vote. 

 The USD is slightly higher on the day but not showing a clear move yet. Source: xStation

The USDIDX is looking to end a run of 3 successive declines and is trading a little higher on the week. Whilst the market remains below the 94.05 level it could be susceptible to further declines and the multi-year low at 90.98 could be retested should there be a negative reaction to the tax bill vote.  

 The USDIDX is looking to end a 3-week losing run and is a little higher so far this week. Source: xStation