Forex Marketz Daily Forex News – Fully Markets Update
Forex traders sent the dollar lower during the Asian trade session today. They are worried that the economy of the United States is slowing and that the Federal Reserve will continue to cut interest rates.
These renewed concerns come after the Institute for Supply Management (ISM) released a bleak manufacturing survey. This weakened the dollar as traders looked for safety elsewhere.
Traders are also monitoring an apparent missile test by North Korea, earlier in the morning that landed in Japan’s economic zone. This supported safe have Forex assets like the yen and the Swiss franc.
Yesterday, the United States released economic data that showed that their manufacturing sector contracted, for the month of September, to its weakest level in over a decade. This sent the U.S. currency lower. It was trading near a two year high price point.
The greenback lost ground against the Swiss franc as the USD/CHF currency exchange rate was trading at 0.9923 Swiss francs. The USD/JPY Forex market was slightly lower to trade at 107.64 yen.
The EUR/USD exchange rate was up to trade at 1.0940. The Australian and New Zealand dollars were also firmer against the U.S. currency.
The dollar index, which measures the greenback in a basket against six other Forex units, was trading slightly lower after hitting a two year high at 99.667 seen during the North American trade session.
The Dollar Weakens as Forex Traders Worry about a Bleak ISM Manufacturing Report
Yesterday’s dismal Institute for Supply Management (ISM) release of their monthly manufacturing report for the United States boosted the safe haven asset classes over riskier assets. Simply put, the ISM manufacturing activity survey missed expectations.
For September, manufacturing in the world’s largest economy contracted once again as economic activity continues to slow down thanks to the trade war with China. The ISM report, the month of September, printed at 47.8. A reading below 50 is contraction. This was the ISM’s lowest reading since 2009.
