Archived IMT (2008.11.03)

European Eurozone Purchasing Managers Index surveys took more battering in October showing the lowest figures, reaching 41.1 in the Eurozone, 42.9 in Germany and 41.5 in the UK. Italian and Spanish PMIs hit record lows at 39.7 and 34.6 respectively. The US version of the PMIs--Institute of Supply Management--due at 10 am expected to drop to 41.5 from 43.5, after shedding 6.4 points in September, which was the biggest drop in 24 years. Were also likely to see the first print below 50 in the prices paid for the first time in over a year, which will confirm the sharp drop in inflation. Fridays release of the Chicago Oct PMI showing a 10-point to a 7-year low of 37.8, may tell us that the ISM could drop below 40, which will likely boost the yen across the board and reaffirm USDJPY resistance at 99.80.