The US dollar is slipping against multiple publicly-traded currency rivals to kick off the holiday-shortened trading week and wind down 2019. The buck, which has pared most of its gains this year, failed to take advantage of the myriad of bullish economic data on Monday, creating a cause for concern that the dollar will start 2020 weaker.
According to the US Census Bureau, the goods trade deficit narrowed in November for the third consecutive month, falling to its lowest level in three years. The imbalance tumbled from $66.8 billion in October to $63.19 billion a month ago, which beats market estimates of an increase to $68.75 billion.
The driving force was a bump in exports and a drop in imports, which is good news for an administration that is attempting to sell more American goods to foreign markets. In November, the US exported more automobiles (3.4%), consumer goods (2.6%), food and beverages (2%), and capital goods (1.3%). At the same time, the country imported fewer consumer goods (-2.2%), capital goods (-2%), industrial supplies (-1.5%), and food and beverages (-1.3%).
When the year started, the deficit was at $79.79 billion.
On the housing front, pending home sales edged up 1.2% in November, lifting the 12-month rate to 7.4%.
In other data, the MNI Chicago Business Barometer climbed from 46.3 in November to 48.9 in December. This is the third consecutive month of an increase in the Chicago purchasing managersâ index (PMI). The Federal Reserve Bank of Dallasâ manufacturing index, which measures general business activity in the sector in Texas, tumbled to -3.2 this month, down from -1.3 in November.
To close out 2019, housing prices in October and consumer confidence in December will be released.
The US Dollar Index shed 0.16% to 96.77, from an opening of 97.02. The greenback will finish the year higher by 0.6%. However, the buck had surged as much as 3%, peaking at the end of September when it topped 99.00.
The USD/CAD currency pair dropped 0.19% to 1.3059, from an opening of 1.3079, at 19:46 GMT on Monday. The EUR/USD rose 0.21% to 1.1199, from an opening of 1.1178.
If you have any questions, comments, or opinions regarding the US Dollar, feel free to post them using the commentary form below.
US Dollar Slides Despite Bullish Data in Final Stretch of 2019
