Weak Manufacturing Pressure US Dollar
The US dollar is currently steady after overnight’s corrective slump or negative price action. The pressure was caused by the awful print of the critical ISM manufacturing, which retreated to a decade-low for the month of September as business conditions were affected by the trade tensions. Renewed fears of a US recession dragged Wall Street and equities lower prompting the possibility of further interest rate cuts.
Trading in Asia will continually be thinned since China’s financial markets are closed until Monday for public holidays. In the European session, the euro may gain and remain better bid, courtesy of the heightened US recession fears and odds of October rate cut. Swiss CPI will be released at 0630 GMT.
Meanwhile, the Pound reacts negatively on headlines about no-deal Brexit. Prime Minister Boris Johnson will unveil his final Brexit offer to the European Union on Wednesday and make clear that Britain intends to leave the EU on Oct. 31, no matter what. UK Construction PMI due at 0830 GMT will also gain a reaction.
NOTE: Traders are advised to be cautious and be updated on the major economic news causing high volatility to achieve better trading results.
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