Dollar Turns In Mixed Performance Against Peers

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The U.S. dollar pared some early gains and turned mixed against its peers on Monday.

Data on manufacturing activity in the month of October, uncertainty about the outcome of U.S. presidential election, and crude oil’s rebound from early weakness, all contributed in somewhat equal measure to dollar’s movements against its rivals.

The report from the Institute For Supply Management showed growth in U.S. manufacturing activity accelerated by much more than expected in the month of October.

The ISM said its purchasing managers index climbed to 59.3 in October from 55.4 in September, with a reading above 50 indicating growth in manufacturing activity. Economists had expected the index to inch up to 55.8.

The dollar index, which was down at 93.89 earlier in the day, rallied to 94.20 by mid afternoon before paring gains. It was last seen at 94.07, up just marginally from previous close.

Against the Euro, the dollar gave up gains and eased to $1.1678 a dollar in the European session. However, it recovered to $1.1624 later on before easing to $1.1640.

Final survey results from IHS Markit showed that the euro area manufacturing sector gained further strength in October driven by acceleration in production and new orders.

The manufacturing Purchasing Managers’ Index rose to 54.8 in October from 53.7 in September. The flash score was 54.4. A reading above 50 indicates expansion in the sector.

The Pound Sterling was weaker by about 0.25%, fetching $1.2917 a unit. The UK manufacturing sector continued to expand in October but the upturn showed signs of losing impetus as the initial boost to growth from the economy reopening faded and job losses accelerated, final survey results from IHS Markit showed Monday.

The IHS Markit/Chartered Institute of Procurement & Supply factory Purchasing Managers’ Index fell to 53.7 in October from 54.1 in the previous month. The flash score was 53.3.

The Yen was trading at 104.76 a dollar, losing ground from around 104.60. However, it was still relatively well placed compared to its level of 104.95 during the Asian session.

The manufacturing sector in Japan continued to contract, albeit at a slower pace, the latest survey from Jibun Bank revealed on Monday with a manufacturing PMI score of 48.7.

That’s up from 47.7 in September, although it remains beneath the boom-or-bust line of 50 that separates expansion from contraction.

The Aussie was stronger against the dollar with the AUD-USD pair trading at 0.7056, up 0.4% from previous close.

The Swiss franc was at 0.9193, down 0.25% from Friday’s close of 0.9170 a dollar.

The Loonie strengthened to 1.3226 a dollar, firming up from 1.3321 thanks to higher crude oil prices and fairly strong manufacturing data.

The material has been provided by InstaForex Company –

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