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The US dollar tanked yesterday as the lSM Manufacturing reading for November came in below expectations. The index printed 48.1 last month, marking a contraction form the prior month’s 48.3 reading. Notably, the reading was also below the expected 49.4 reading. This is the fifth month of weakness in the US factory sector and the fourth consecutive month of below-neutral readings.

New Exports Down

The drop in last month’s manufacturing reading has been mainly attributed to weakness in new exports and a decline in inventories. With manufacturing having been in contractionary territory for the last four months, the outlook for the US economy is looking fairly subdued.

Fed Easing Still Possible

At its recent meeting, the Fed noted that it would hold off on further rate cuts while it waited to assess the impact of its recent cuts and the path of incoming data. With key readings like this remaining in negative territory, there is still a case for further easing from the Fed. The Fed itself n...

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