The US dollar fell to two-week lows against its major rivals yesterday after concerns over the US economy’s resilience sapped USD demand.
Markets still see the Fed’s policy bias leaning towards dovishness in the face of ongoing trade tensions with China and slowing domestic growth.
Disappointing advance retail sales data put an additional dampener on USD exchange rates ahead of the weekend, suggesting that consumers are taking a more cautious outlook in the final months of the year.
Reports that the US and China had agreed an initial phase one trade agreement encouraged a greater sense of market risk appetite, meanwhile, denting demand for the safe-haven US dollar.
November’s raft of US industrial and manufacturing production data could offer USD exchange rates a fresh boost, however.
Evidence that the manufacturing sector bounced back from October’s weakness would raise the odds of a stronger fourth quarter growth rate, giving the Fed less reason to consider cutting rates.
Even so, as the latest Philadelphia Fed manufacturing index points towards a fresh loss of momentum in the sector any US dollar gains could prove short-lived this week.
Joining the corporate trading desk in 2007, Phil now over sees all of Currencies Direct’s corporate dealing activity. Having gained experience working with hundreds of businesses to optimise international payments processes and execute comprehensive risk management strategies, Phil currently works with a portfolio of corporate clients whilst managing Currencies Direct’s overall market exposure
Phil has FCA approval and has completed the Certificate in International Treasury Management (CertiTM)