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A significant drop in the ISM manufacturing PMI, but it remains robust. The figure fell from 60.8 to 58.7, lower than 59.6 expected. In any case, the number remains well above the 50-point threshold that separates expansion from contraction. The prices component beat expectations with a strong 68.5, new orders dropped to 63.4, and the employment component edged lower to 59.8 from 60.3 points beforehand.

The US dollar is marginally lower in the immediate aftermath, with USD/JPY dropping from 114.20 to 114.10.

The purchasing managers’ index for the manufacturing sector by the Institute for Supply Management was expected to slip to 59.5 in October points from 60.8 in September. This is the second hint toward Friday’s Non-Farm Payrolls report. Markit’s final manufacturing PMI came out at 54.6, up from 54.5 originally reported. ISM’s number carries more weight.

The US dollar was looking good, rising against most currencies ahead of the publication. Earlier, the greenback enjoyed an upbeat jobs report from ADP. According to the firm, the US gained 235K positions in October, better than had been forecast. This is a positive hint for the NFP, even if the numbers don’t always match, to say the least.

The bigger event for today is the Fed decision. Preview:.  Fed: 4 reasons to cement the hike, one reason to send the dollar down

The headlines are occupied by the horrible terror attack in New York yesterday. At the wake of the week, Trump’s new troubles captured the headlines. Politics do not seem to matter too much to markets this week. However, Trump will make a decision on the new Chair of the Fed, and this is set to be a significant market mover. The leading candidate is Jerome Powell and the announcement is due tomorrow.

USD/JPY: How To Trade Fed Chair Nomination -Credit Agricole