US dollar legs lower on manufacturing worries
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The US dollar is under broad pressure on manufacturing worries after a regional manufacturing survey plummeted. The pound is taking full advantage and has nearly erased today’s decline.
Sterling is also benefiting from comments from BOE hawk Catherine Mann, who said the gap between headline and core inflation in the UK is more persistent then in the US or eurozone.
Treasuries are also weighing on the US dollar with 10-year yields down 4.8 bps to 3.64% and the front end down 10 bps.
A Chicago-area survey of manufacturers fell by the most since the dawn of the pandemic, highlighting the kind of negativity that was in the comments of the Dallas Fed survey yesterday.