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Dollar Weakens At The Start Of The New Year

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The dollar is losing ground against its major rivals on the first trading day of the new year. Trading activity remains subdued as investors return to action following the long holiday weekend. The lack of U.S. economic data is keeping some investors on the sidelines, but traders can look forward to some important releases later this week.

The ISM manufacturing report is due for release Wednesday morning and the FOMC will release the minutes from its most recent policy meeting in the afternoon. Private sector employment and weekly jobless claims will both be released Thursday morning, due to the holiday shortened week.

They will be followed up by the release of the all important U.S. jobs report for December, which is slated for Friday morning. Factory orders international trade and the ISM non-manufacturing index are also set to be released at the end of the week.

The dollar dropped to nearly a 4-month low of $1.2080 against the Euro Tuesday, but has since bounced back to around $1.2050.

Eurozone manufacturing sector activity grew the most since the survey began in mid-1997, final data from IHS Markit showed Tuesday.

The factory Purchasing Managers' Index improved to 60.6 in December, in line with flash estimate, from 60.1 in November. This was the highest score since mid-1997 and identical to the flash estimate published on December 14.

The buck has tumbled to over a 3-month low of $1.36 against the pound sterling Tuesday, from an early high of $1.3506.

The UK manufacturing activity grew strongly at the end of 2017, though the pace of expansion moderated slightly, data published by IHS Markit showed Tuesday.

The IHS Markit/Chartered Institute of Procurement & Supply factory Purchasing Managers' Index fell to 56.3 in December from November's 51-month high of 58.2. The score was below economists' forecast of 57.7.

The greenback fell to a low of Y112.054 against the Japanese Yen Tuesday, but has since rebounded to around Y112.300.

by RTTNews Staff Writer

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