US Dollar Weakens Following the Release of Disappointing Economic Data and Trump’s Latest Tariffs
The US dollar is trading bearish early into Tuesday after the US Manufacturing PMI revealed a contraction in factory activity for the fourth consecutive month. At the time of writing, the US dollar index is trading at around 97.90.
The ISM Manufacturing PMI slipped to 48.1 in November from 48.3 in the previous month, staying below the 50-threshold indicating contraction. The figure also beat economists’ expectations, which were for a rise to 49.2 instead.
The US dollar has also weakened as trade tensions threaten to disrupt the mood in the markets all over again. Even as uncertainties surrounding the US-China phase one trade deal remain in focus, Trump announced tariffs on steel and aluminum imports from Brazil and Argentina, alleging that these nations were devaluing their currencies and getting an unfair advantage in exporting food products.
In more disappointing news for the US dollar, construction spending also posted a surprising decline during October to the lowest levels in three years. According to data released by the US Commerce Department, construction spending contracted by 0.8% in October after a 0.3% decline in September.
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