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EUR/USD needs a weak ISM report today

The EUR/USD has fallen to a new low on the week a short while ago. It dropped to 1.0866 as flow continues to head back to the US currency. The rebound in the USD/JPY, from an earlier session low at 147.61, to back above 148 has not helped the EUR/USD. So, at 3pm GMT we get the latest US ISM manufacturing index. This is expected to show a better reading than that seen in October, when the index stood at 46.7. The markets expect a modest rebound to around 48. There are important components to this data, other than the headline number, namely prices paid, employment and new orders, all of which can impact how the dollar might react to the overall report. Once those become known an update here will follow. Right now the EUR/USD could do with some weak data on all fronts, as it remains under pressure ahead of the US equity market opening. As to whether a decent ISM is priced in at below 1.0875 in the EUR/USD is debatable, but for sure a disappointing one is not. The EUR/USD is currently trading at 1.0868
 

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