Forex

Greenback rises as traders digest shocking decline in US manufacturing information

© Reuters.

From Gina Lee

Investing.com – The dollar rose in Asia on Tuesday morning as a surprising slowdown in US manufacturing growth cut investor bets on a booming US economy, which gave the US currency a boost.

The greenback versus a basket of other currencies rose 0.22% to hit 91.125 at 1:08 p.m. ET (5:08 p.m. GMT).

The pair rose 0.21% to 109.28.

The pair fell 0.21% to 0.7744 and the pair fell 0.33% to 0.7174.

The pair remained stable at 6.4735 while the pair fell 0.27% to 1.3872.

The Japanese and Chinese markets were closed for a vacation.

The US released on Monday was below the expected 60.7 in April. The lack of raw materials and transportation growls contributed to the decline, which plunged the dollar from a three-week high against the yen and a two-week high against the euro.

The euro rose 0.3% as investors digested economic data from the region. In April it was 66.2, in the euro zone 62.9.

Investors now expect more data to be released later in the week, including the U.S. Employment Report and April Employment Report, which includes the following.

Some investors suggested that strong numbers could boost the dollar by driving expectations for higher interest rates, while others argued that a strong US economy would weigh on the greenback as imports grow and the trade deficit grows.

"The ISM manufacturing report was below expectations, but payroll should be at least as high as consensus expectations … The Fed's reluctant influential core won't get any of this, but expectations for solid US data in this one Week and likely the more hawkish regional Fedspeak leaves the dollar index positioned for more reciprocal price movements, "Westpac analysts said in a note.

Benchmark ten-year US Treasury bond yields fell 2.5 basis points overnight as data disappointed and the New York Fed President insisted the economic recovery so far was "nowhere near" to tighten monetary policy .

Investors are also waiting for policy decisions on Thursday as the Reserve Bank of Australia (RBA) held its rate constant at 0.10% as it passed on its previous rate. Investors are also looking for clues as to whether the RBA will improve its economic outlook due Friday. In the meantime, the Bank of England could announce a slowdown in its bond purchases when it makes its policy decision on Thursday.

In the cryptocurrency space, Ether extended its record run as it rose to a new record of $ 3,457.64 before pulling back slightly.

Disclaimer: Fusion Media would like to remind you that the information contained on this website is not necessarily real-time or accurate. All CFDs (stocks, indices, futures) and forex prices are not provided by exchanges, but by market makers. As a result, prices may not be accurate and may differ from the actual market price. This means that the prices are indicative and not suitable for trading purposes. Therefore, Fusion Media is not responsible for any trading losses you may incur as a result of using this data.

Fusion Media or any person involved with Fusion Media assumes no liability for any loss or damage caused by reliance on the information contained on this website, such as data, offers, charts and buy / sell signals. Please inform yourself comprehensively about the risks and costs associated with trading in the financial markets. This is one of the riskiest forms of investment possible.

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Close