ForexLive North American wrap: Weak ISM surprises market

By: Adam Button

ISM manufacturing index at 3-year low Swiss banks put negative interest rates on deposits US Oct construction spending 1.4% vs 0.5% exp Markit US Nov final PMI 52.8 vs 52.1 exp IMF drops opposition to capital controls Fed’s Rosengren says ‘strong case’ for $85B/month in total asset buys Fed's Bullard says $65B in total buys more like it Fed’s Dudley: QE will continue until there is a substantial improvement in jobs RBC Canadian manufacturing PMI 50.38 vs 51.39 prior Spain requests bank aid funding Fitch: Meaningful US deficit cut would like hurt state funding Italy reports narrower deficit 52-week highs in DAX and CAC France's Hollande:  European economy bigger, stronger than US, China Republicans put a new fiscal cliff offer on the table Eurogroup hear Juncker to step down late this month, early next month; Group to meet again December 13 S&P 500 falls 0.5% to 1409 US 10-year notes rise 1.2 bo in yield to 1.625% EUR/USD extended its range to 1.3076 amid poor US ISM data and closes above 1.3050 resistance. Cable managed a push above 1.6100 to trigger stops, fueled partially by the news that the Duchess of Something or other is knocked-up. AUD/USD traded on a soft note ahead of what is expected to be a 1/4% cut in the RBA's target rate at Tuesday's meeting. Sell the rumor/buy the fact may be the play there...