{"id":156678,"date":"2019-10-02T10:15:52","date_gmt":"2019-10-02T14:15:52","guid":{"rendered":"https:\/\/www.countingpips.com\/?p=156678"},"modified":"2019-10-02T09:16:25","modified_gmt":"2019-10-02T13:16:25","slug":"dollar-slips-as-manufacturing-contracts-further","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2019\/10\/dollar-slips-as-manufacturing-contracts-further\/","title":{"rendered":"Dollar Slips As Manufacturing Contracts Further"},"content":{"rendered":"
October 2, 2019<\/div>
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By <\/strong>Orbex<\/strong><\/a><\/p>\n

The US dollar traded weaker as it gave back the gains from the previous session.<\/p>\n

The ISM manufacturing PMI disappointed as the index fell to 47.8 in September. This follows a decline to 49.1 in August.<\/p>\n

The employment gauge was also down, falling to the lowest levels since January 2016. The data comes amid global trade slowing. Meanwhile, new orders, backlogs, and inventories contracted during the period.<\/p>\n

Eurozone Flash Inflation Estimate Falls in September<\/strong><\/h2>\n

The latest flash inflation estimates for the eurozone showed a decline from 1.0% in August to 0.9% in September. Economists forecast that inflation would rise 1.0% during the month.<\/p>\n

The core CPI estimates, however, came inline with the median expectations of 1.0%. The decline in the headline CPI comes just after the\u00a0ECB started its QE program.<\/a><\/p>

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EURUSD Testing the Support Area<\/strong><\/h3>\n

The currency pair managed to post a rebound from two-year lows. However, the euro is testing the support area of 1.0925 \u2013 1.0944. A close above this level will confirm the upside. But resistance will be confirmed if the EURUSD fails to rise any higher. In the near term, the EURUSD will likely be confined to the short term range.<\/p>\n

\"EURUSD\"<\/a><\/p>\n

UK Manufacturing Improves to a 4-month High<\/strong><\/h2>\n

Manufacturing activity in the United Kingdom rose slightly to 48.3, beating estimates of 47.4. In August, manufacturing activity fell to 47.4.<\/p>\n

A reading below 50 indicates a contraction in the index. The UK\u2019s manufacturing sector has been trending below 50 since May this year. The data for September puts the manufacturing activity at a four-month high.<\/p>\n

GBPUSD Extends Declines<\/strong><\/h3>\n

The currency pair failed to capitalize on the manufacturing PMI report and closed weaker. Price action remains trading below the support level of 1.2291. Therefore, any rebound in the short term could see price retesting this level for resistance. The overall bias remains towards 1.2082, unless GBPUSD closes above 1.2291.<\/p>\n

\"GBPUSD\"<\/a><\/p>\n

Gold Rebounds as Dollar Loses Steam<\/strong><\/h2>\n

The precious metal pared losses as the USD turned weaker. Gold prices jumped on Tuesday following the weak ISM manufacturing data.<\/p>\n

The report could potentially stir up speculation for another\u00a0rate cut from the Fed.<\/a>\u00a0Investors will be looking to this Friday\u2019s payrolls report which could be a major market-moving event.<\/p>\n

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XAUUSD Retesting 1485 for Resistance<\/strong><\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n

The rebound in the precious metal has sent gold prices to retest the breached support level of 1485 for resistance. If price fails to breakout any higher, we could expect the downside to prevail.<\/p>\n

The lower support area at 1431 \u2013 1428 remains the downside target. However, if the USD weakness continues, there is scope for gold prices to extend the bounce higher, invalidating the downside bias.<\/p>\n

\"XAUUSD\"<\/a><\/p>\n

By <\/strong>Orbex<\/strong><\/a><\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

By Orbex The US dollar traded weaker as it gave back the gains from the previous session. The ISM manufacturing PMI disappointed as the index fell to 47.8 in September. This follows a decline to 49.1 in August. The employment gauge was also down, falling to the lowest levels since January 2016. The data comes […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-156678","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/156678","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=156678"}],"version-history":[{"count":2,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/156678\/revisions"}],"predecessor-version":[{"id":156690,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/156678\/revisions\/156690"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=156678"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=156678"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=156678"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}