The Greenback Struggles to Recover from Weak Economic Data

The greenback fights to recover some of its losses from yesterday’s weak manufacturing data. News from Trump’s new tariff announcement isn’t also making it better for the buck in today’s sessions.

Yesterday, the United States Institute for Supply Management released the November factory PMI results. Traders were discouraged as the sector remains in contraction territories for the previous month.

The US ISM Manufacturing Purchasing Managers’ Index declined from 48.3% to 48.1%. The figures, unfortunately, didn’t meet expectations of 49.2% improvement, sending the greenback and US stocks lower in sessions.

This is the fourth straight month that the manufacturing data is spotted below the 50%-mark, which distinguishes growth and depreciation.

Traders worry about the worsening business conditions in the US, which is also topped by Trump’s latest tariff announcement. Yesterday, the US President Donald Trump tweeted new steel sanctions against France, Brazil, and Argentina, surprising the market with it.

The new sanctions come at a time when US and Chinese diplomats struggle to finalize a phase one agreement.

Tough Recovery

The greenback’s indices are trying some of their wounds and have finally flatlined in today’s trading sessions.

The US dollar index futures for December 19 steadied at -0.02% or 0.023 points this Tuesday. While the US dollar index edged slightly lower by 0.06% or 0.06 points today.

Now, against other major currencies in the forex market, the greenback lacked the strength to regain its footing in sessions. The buck recorded tough losses against the British pound, Australian dollar, and New Zealand dollar today.

The GBP USD exchange rate hiked 0.31% or 0.0040 points this Tuesday. The pair currently trades around $1.2976 and has even peaked at $1.2982.

The AUD USD trading pair, on the other hand, climbed higher by 0.54% or 0.0037 points. The pair reached ranges between $0.6815 and $0.6855 in trading sessions.

Lastly, the NZD USD pair rallied 0.38% or 0.0024 points and is currently trading for $0.6525 this Tuesday.