The dollar weakened on Friday following worse-than-expected business activity surveys which, accompanied with the US’s high inflation and recession fears, weighed on market sentiment. This morning the dollar has seen a slight rebound.
PMI figures for the US showed a slowdown in growth for the manufacturing industry and a significant contraction for the services industry. Inflationary pressures and a weakening demand for goods and services have increased worries that the US economy is headed for recession. All eyes will now be on the Federal Reserve’s latest interest rate decision on Wednesday.
It is a busier week for US data this week, with new home sales on Tuesday, durable goods orders on Wednesday, GDP data released on Thursday and personal spending and income figures on Friday.
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