The US dollar remains under pressure

• ISM manufacturing employment (Oct), fact 56.8, forecast 57.5.
• ISM index of business activity in the manufacturing sector (PMI)  (Oct), fact 57.7,  forecast 59.0.

The US dollar remains under pressure across the market. A very weak data on business activity in the US manufacturing sector that returned to the minimum values ​​of the current year had an additional pressure on the American dollar.

Fig. 1. The US Index of business activity in the manufacturing sector (PMI) chart

 

At the same time, this statistic only increased the pressure on the American dollar, which already remains significant. The collapse of the American dollar caused by the strengthening of the Chinese currency. The US dollar index, after breaking through support at 96.50, set its sights on support at 96.30, from which a correction may be formed. Strong support is the level of 96.00.

The US dollar index chart. The current price is 96.40 (10-year government bonds yield is the blue line)

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Andre Green

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