Archived IMT (2010.12.01)

US Nov Manuf ISM slipped to 56.6 from 56.9, while new orders and employment indices also edged lower to 56.6 from 58.9 and to 57.5 from 57.7. Oct Construction spending rose 0.7% vs. expectations of a 0.4% decline. Need to see if the reports are good enough to extend 10 year yields above their 2.96% barrier reached on Nov 15, which was the highest in 3-months. The key resistance remains at 3.1%, coinciding with the 200-day MA, last broken since in May 13. EURUSD is seen remaining capped at $1.3180 before retreating gradually towards $1.2920 and $1.2770. GBPUSD faces $1.5640s as the intermediate resistance, a break of which could retest $1.5760. USDJPY regains 84 mainly on broadening JPY weakness as risk appetite improves across the board. Medium term outlook remains in favour of prolonged gains towards 87.20. CATCH ASHRAF on CNBC EUROPE TODAY at 16:10 GMT