The US dollar had a disappointing day in key areas yesterday, thanks to unsatisfying business activity data from the country. The Chicago Purchasing Managers’ Index (PMI) fell by more than anticipated, and as a result the dollar fell to the lowest point since October 2008 against sterling, whilst also reaching the lowest in a month against the euro. Pending home sales data failed to halt these losses, despite coming in ahead of their expected levels.
Today, the dollar will look to the manufacturing sector in the hope of regaining some of this ground, as the independent PMI figure from this area is released. This is the only major release scheduled for the day, so aside from this investors will be looking ahead to the ever important labour data due in the coming days.