The Bloomberg U.S. Dollar Index weakened after a November advance that was the biggest in six months, as demand for the safety of the U.S. currency waned before reports that may signal a global manufacturing pickup.
The greenback fell versus most of its 16 major peers after figures today and yesterday showed manufacturing in China continued to grow last month. The euro strengthened before a report that may confirm a fifth-straight period of manufacturing growth in the 17-nation region, while the pound climbed before a factory output reading that may indicate an eighth month of expansion. Thailand’s baht touched the weakest in almost three months amid protests in the nation’s capital.
“There’s fairly broad-based dollar weakness, which is consistent with the better-than-expected numbers on Chinese manufacturing,” said Sean Callow, a senior currency strategist at Westpac Banking Corp. in Sydney. “That’s supportive of risk appetite, and generally of currencies other than the U.S. dollar.”
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.