Breaking: Dollar falls as ISM Manufacturing PMI tumbles to 47.2
|The ISM Manufacturing Purchasing Managers' Index badly disappointed with a score of 47.2 points in December, far below 49 expected and 48.1 in November. Construction Spending beat expectations with an increase of 0.6% in November, but markets are ignoring it.
The ISM score is the worst since June 2009 – the height of the crisis. The New Orders component fell to 46.8 points, the worst since April 2009. Employment dropped to 45.1 points.
The ominous forward-looking gauge is weighing on the US dollar, with EUR/USD jumping above 1.1150 and GBP/USD recovering toward 1.31.
Any score below 50 represents contraction and the deterioration may also drag the larger services sector lower. The publication also serves as a hint toward next Friday's Non-Farm Payrolls.
Investors are also worried about the massive US-Iranian escalation – even an outright war – after American drones killed Qassem Suleimani in Baghdad. Tehran pledged to retaliate. The news from the Middle East sent stocks down and the dollar up. The poor data is reversing the dollar's gains.
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