Ahead of today’s Federal Reserve FOMC meeting we have had some fairly subdued US activity numbers. The ISM manufacturing index dropped back into contraction territory in April at 49.2 from 50.3 (consensus 50.0). Production held just above the break-even 50 level at 51.3, but new orders are contracting again at 49.1, the lowest level since December, while the employment component came in at 48.6, the 7th consecutive sub-50 print and the 13th sub-50 reading in the past 15 months. Prices paid jumped to 60.9 from 55.8, but this is a reflection of the run up in oil prices (which has subsequently reversed) and ongoing ... (full story)