Forex Marketz Daily Forex News – Fully Markets Update
The U.S. dollar is near a one week low against the safe haven Japanese yen during the Asian trade session today. The dollar is also near a near two week low price point against the euro currency.
Traders are digesting an extremely weak U.S. ISM purchasing manufacturers’ index (PMI) as well as a possible new trade war front between the United States and the European Union. The U.S. is also opening a new trade war front with several South American nations.
Trader sentiment fell after President Donald Trump announced that he is reinstating tariffs on metal imports from Brazil, Chile and Argentina.
Overnight, closely watched ISM manufacturing PMI data, out of the United States showed that their manufacturing sector contracted for the fourth month in a row.
There was a decline in construction spending and this ISM report did not help traders from thinking that the U.S. economy is stabilizing.
The USD/JPY Forex market was last trading near 109 yen. This is near its lowest price point in a week.
The EUR/USD currency exchange rate was last trading at 1.1076 after shedding over half a percent on Monday. This was the biggest percentage declines since September 17.
The dollar index, which measures the U.S. currency against six other Forex units, was last trading at 97.887. The USD index saw its biggest decline, in a single day, on Monday in six weeks.
The Dollar Nurses a Selloff after Weak ISM Manufacturing PMI Data shocks Traders
Forex traders are still digesting a shockingly weak Institute for Supply Management (ISM) manufacturing purchasing managers’ index (PMI) that was released overnight.
Manufacturing makes up roughly eleven percent of the total gross domestic product (GDP) for the United States. The ISM PMI, for November, fell to 48.1. The PMI came in at 48.3 for October.
More importantly, the employment component, for the ISM PMI, also narrowed. This number came in at 46.6, which is down from 47.7 seen October.
