U.S. manufacturing activity continues to slow

• ISM Manufacturing PMI (Oct), fact 48.3, forecast 48.9.

Business activity in the manufacturing sector (PMI) of the USA maintains a downward trend, showing a marked decrease in activity in October, despite the deviation from the annual low. This confirms concerns about a slowdown in the economy, but growth above the September low may indicate attempts of recovery.

Fig. 1.  ISM Manufacturing PMI in the US

The US dollar index reacted to weak data on business activity extremely negatively, returning to the lows of the day, to positive employment data. A decrease in business activity increases the likelihood of further stimulus measures by the US Federal Reserve. The US dollar index maintains lateral dynamics, limited to the trading range from 97.50 to 97.20-10.

Fig. 2. The US dollar index chart. Current price – 97.40 (10-year US government bonds – blue line yield)

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Hanzenko Anton

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