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US Dollar Correction Persists, US PMIs Mixed

US Dollar Correction Persists, US PMIs Mixed

Justin McQueen, Strategist

US Dollar Analysis & News

  • Softer Manufacturing Sector Offset By Services
  • USD Hovers Over Weekly Lows

Markit PMI Misses Expectations

Much like in Europe, flash PMIs in October were mixed as a softer manufacturing sector had been offset by the more important services sector. Once again, supply bottlenecks had continued to weigh on manufacturers, while services saw a revival as the spread of the Delta variant eased. Additionally, there were more encouraging signs for the labour market with hiring picking up as firms had expanded capacity to meet rising demand.

US PMI Turning Higher on Resurgent Services Sector

US Dollar Correction Persists, US PMIs Mixed

Source: Refinitiv

USD Reaction Muted

As I highlighted last week, the USD had been at risk from a reversal given how long the market had been on dollars. For now, the softer USD looks to be more profit-taking as opposed to the beginning of a bear trend. That said, eyes are on weekly lows at 93.50 and should the dollar close below, this pullback may have more to run.

US Dollar Chart: Daily Time Frame

US Dollar Correction Persists, US PMIs Mixed

Source: Refinitiv

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

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