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Forex - U.S. Dollar Falls on Weak Manufacturing Data

Published 16/11/2019, 03:08 am
© Reuters.
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Investing.com - The U.S. dollar fell on Friday, after data showed that manufacturing woes in the country have deepened.

Manufacturing output fell to 0.6% in October, the most since May 2018. Excluding autos, output was down 0.1% last month, the Federal Reserve data showed. Industrial production slipped 0.8%, while the Empire State Manufacturing Index tumbled to 2.9 from 5.0 expected.

Diminishing concerns over U.S. trade did nothing to ease forex traders. The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, fell 0.2% to 97.863 as of 11:08 AM ET (16:08 GMT).

White House economic advisor Larry Kudlow said on Thursday that the U.S. and China were close to securing a trade deal. His comments come after a week of volatility after reports that the two sides had hit a snag over trade talks. Chinese media on Friday fleshed out arguments that Chinese demand for U.S. farm products is nowhere near the level of purchases that Washington is insisting on in order to seal a partial phase one deal.

U.S. Commerce Secretary Wilbur Ross said Friday that U.S. and Chinese officials would hold a call later in the day, but added that the U.S. could still impose tariffs on Chinese goods, which are scheduled for Dec. 15.

The safe-haven Japanese yen was lower with USD/JPY up 0.3% to 108.75.

Elsewhere, the euro was higher, with EUR/USD up 0.3% to 1.1051 while GBP/USD rose 0.2% to 1.2901.

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