U.S. Dollar Falls as New York Manufacturing Activity Slumps

Forex Distribution

Investing.com – The U.S. dollar fell on Monday after manufacturing activity in the New York area fell to a two-and-a-half year low in June, while other currencies remained quite ahead of a flurry of central bank meetings.

The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, was down 0.1% to 96.935 by 11:25 AM ET (15:25 GMT).

Data on Monday showed that manufacturing activity in the New York region posted a record drop in June, as economic activity in the area contracts. Those numbers, coupled with weak inflation and rising jobless claims last week bolstered the case for the Federal Reserve cutting interest rates later this year.

While the central bank is not expected to cut rates at its meeting on Tuesday and Wednesday, the Fed is expected to lower rates in July, with an 84.5% chance priced in, according to Investing.com’s Fed Rate Monitor Tool.

Elsewhere, the European Central Bank meets in Portugal and the Bank of England’s makes an interest rate decision on Thursday.

The dollar was slightly higher against the safe haven Japanese yen, with USD/JPY at 108.62.

Elsewhere, the euro rose on the weaker dollar, with EUR/USD rising 0.3% to 1.1233. Sterling was lower, with GBP/USD slipping 0.2% to 1.2562, while USD/CAD fell 0.1% to 1.3399.

Original article seen on Investing.com