The dollar traded lower on Monday morning after weak results from a regional manufacturing survey added to doubts sowed by grim data last week that the U.S. recovery is on shaky grounds.
The New York Fed’s Empire State business conditions index fell to 3.7 in August versus 17.2 in July, and far lower than the 15 points forecast by a Reuters survey of economists. The reading indicates a slowdown in the manufacturing sector though the results were partially offset by strong housing data released earlier on Monday.
U.S. homebuilder confidence rose for a third straight month in August to match a record high as record-low interest rates spur a surge in customer traffic, especially in suburban markets that are growing in appeal as a result of the coronavirus pandemic.
Against a basket of currencies the dollar traded 0.16% lower at 92.869, roughly in the middle of the range it has held since dropping to a two-year low in late July.
The moves in the dollar index were muted as uncertainty kept a lid on sentiment ahead of a week that includes the release of minutes of the U.S. Federal Reserve’s last policy meeting and the U.S. Democratic Party’s nominating convention.
Presumptive presidential nominee Joe Biden and the Democrats will highlight the party's inclusive "big tent" Monday night as their 2020 National Convention gets underway with a lineup that features as many former Republican governors as "democratic socialists" — along with the star power of Michelle Obama.
Barack Obama's popular wife anchors the primetime slot on the opening night of this year's anything-but-normal convention, that aims to present an alternative future to what Democrats call Mr Trump's politics of division.
The Democratic National Convention is not a convention in the traditional sense. There will be no physical gathering place, no cheering audience, no balloons. Republicans face the same challenge next week.
Markets are also looking to the Fed minutes, due to be released on Wednesday, for any clues about an anticipated shift in the policy outlook.
Speculation is rife the U.S. central bank will adopt an average inflation target, which would seek to push inflation above 2% for some time to make up for the years it has run below.
Reference: CNBC, Cbc.ac
Oil prices edged lower on Friday on worries that demand would recover more slowly than expected from COVID-19 pandemic lockdowns, while rising supply also overshadowed optimism over falling crude and fuel inventories.
This week, two prominent forecasters, the International Energy Agency and the Organization of the Petroleum Exporting Countries, trimmed their 2020 oil demand forecasts. OPEC and its allies are increasing output this month.
Brent crude LCOc1 settled at $44.80 a barrel, falling 16 cents. U.S. West Texas Intermediate CLc1 settled at $42.01 a barrel, down 23 cents.
For the week, Brent was up 0.9% and WTI gained 1.9%.
U.S. oil producer Hess cutting about 10% of workforce: sources
U.S. oil producer Hess Corp (HES.N) is cutting about 10% of its workforce and streamlining operations after reporting its fifth quarterly loss in a row, according to people familiar with the matter.
Energy companies have slashed spending and production as petroleum prices have dropped 31% this year. A sharp decline in fuel demand due to the COVID-19 pandemic has oil companies girding for a prolonged period of weak prices.
Reference: Reuters
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