Dollar Strengthens Against Most Majors As Weak UK PMI Triggers Risk-aversion

Dollar Strengthens Against Most Majors As Weak UK PMI Triggers Risk-aversion


The US dollar regained ground against most of its major rivals in early deals Wednesday as the worse than forecast UK manufacturing PMI numbers initiated some fresh safe-haven buying.
Activity in UK's manufacturing sector decreased for the third consecutive month in July, and the relevant indicator dropped to the lowest level in thirty-eight months, data from a survey by Markit Economics and the the Chartered Institute of Purchasing and Supply (CIPS) showed today.
The seasonally adjusted purchasing managers' index (PMI) for the manufacturing sector dropped to a 38-month low of 45.4 in July from a revised 48.6 in June. Economists were looking for a reading of 48.4 in July. A PMI reading below 50 indicates contraction in the sector, while one above suggests growth.
The greenback rose to a 6-day high of 1.5621 against the pound, while touching session's highs of 1.2291 against the euro and 0.9776 against the Swiss franc after the data. However, the risk-off rally was limited shortly and the US dollar was trading back below 1.5650 against the pound, 1.2315 against the euro and 0.9760 against the Swiss franc around 4:50 am ET.




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