Once again, economic data indicates that things in the United States are far from certain. As a result, the US dollar is down against many of its counterparts today. The culprit in this case appears to be the latest manufacturing data.
The Richmond Federal Reserve reports on the manufacturing performances in the mid-Atlantic and the upper Southeast regions of the United States, and the latest data is somewhat disappointing. The performance measure for July shows that there is a negative reading, down from a positive reading.
This news indicates that the US economy might not be picking up as expected. With the economy still moving in fits and starts, and with much of the data mixed, it is little surprise that the US dollar is a little weaker right now. Indeed, the greenback is down against many of its counterparts on this news.
If these types of reports continue to be the norm, there is a good chance that the Federal Reserve will continue its quantitative easing program rather than tapering sooner.
At 16:24 GMT the dollar index is down to 82.1000 from the open at 82.1660. EUR/USD is up to 1.3213 from the open at 1.3187. GBP/USD is up to 1.5364 from the open at 1.5361. USD/CAD is down to 1.0298 from the open at 1.0334.
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