The greenback lost its footing in response to unimpressive economy data this morning after the Federal Reserve of New York reported that its Empire State Manufacturing Index was down by 6.80 points in October. The Index was down 1.99 points in September, and the consensus economists’ estimate was that the Index would gain 1.00 points this month.
The newly released data on US industrial production has also casted dark shadows on the US economic landscape. Data shows that the industrial production gained a meager 0.1% to underperform the economists’ forecast of a 0.2% increase.
The uninspiring economic data is already forcing the USD lower in the Forex market. This morning, the USD/CAD was down 0.08% to 1.3134 after hitting a session high of 1.3136 before the economic data was released.
The Dollar Index (DXY) was down 0.27% to 97.85, and the WSJ Dollar Index (BUXX) was down 0.21% to 88.28 as of 19:24 GMT.
Going forward, the two economic data released today could influence the Federal Reserve‘s plan to raise interest rates in December. If the data shows a marked uptrend next month, you can expect the Fed to maintain its hawkish tone and the USD will continue on its bullish ascent. Conversely, if the data fails to impress Wall Street next month, the Fed might be forced to adopt a dovish stance and the USD might retreat from its recent highs.
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