Factory orders for US goods rose by only 0.1% in January, which was less than expected. This offers more evidence that US manufacturing activity, as well as the US economy in general, is slowing. Weakening economic data this month has supported the Fed’s stance to be ‘patient’ and review data before increasing rates in the near term.
Meanwhile, the US-China trade saga continues, with reports that talks have soured due to China refusing to accept some demands. This is causing concerns that the trade war is not coming to a close as hoped, and that more tariffs could be imposed on exports between the two countries. The lack of progress has caused the dollar to edge higher this morning.
Today, investors wait for the release of economic forecasts from the Federal Reserve’s meeting, which are due out at 6pm.
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