The dollar is weak against both the pound and the euro this morning, due to suggestions that the Federal Reserve may cut interest rates. St Louis Fed President, James Bullard, said that an “insurance” rate cut may be “warranted soon.” This is due to rising trade war tensions and the possibility that President Trump may begin to tariff more of the US’s trade partners.
US manufacturing PMI dipped to its lowest level in almost a decade yesterday, to a figure of 52.1. This was thought to be due to a fall in new orders and customers postponing orders due to ongoing trade tensions.
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