Right out of the 2008 gate, the bad financial news begins, shaping this new year to be a continuation of things from 2007 in the FOREX as the US dollar continues its fall against the Euro and other foreign currencies.
The Institute of Supply Management (ISM) Manufacturing Index was released today and the release was not good. This ISM report measures the activity level of purchasing managers in the manufacturing sector, with a reading above 50 indicating expansion. We’ve been keeping our head above 50 for awhile now, and forecasters expected a number of about 50.7 or so. Instead, we got a numbing 47.7!
The news was immediately met with a drop in the dollar. After finding some strength by mid-December, the dollar had continued its fall to end the year. Now, the dollar has fallen further against most other major currencies, especially the Euro. The currency pair EUR/USD was trading at about 1.4740 this morning and looks to continue its rise. We may see 1.500 before long!
