The dollar was strong against a basket of currencies yesterday. A series of ISM manufacturing data showed positive results, reporting that US factory activity unexpectedly rebounded in January after contracting for five consecutive months.
The first stage of the 2020 presidential election, the Iowa caucuses, began yesterday. Being the first contest, the Iowa caucuses are perceived to be fairly important for setting the tone for the rest of the election. Donald Trump won the state by 9.4% in 2016 and it’s also thought that he’ll win this year with a healthy margin. However, Iowa is usually labelled a ‘swing state’, and the Democrats have made gains there since 2016.
China has accused the US of spreading coronavirus ‘panic’ after its decision to declare a public health emergency and deny entry to foreign nationals who have visited China in the past two weeks. There have also been reports that the US has suggested a partial evacuation of its embassy staff.
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