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Barchart
Barchart
Rich Asplund

UNBELIEVABLE: Dollar pulls back as us manufacturing activity contracts - Caught on Camera

The dollar index (DXY00) fell from a 3-week high on Monday and finished down by -0.16%.  The dollar retreated on Monday after the US Dec ISM manufacturing index unexpectedly contracted by the most in fourteen months.  Also, Monday’s rally in stocks curbed liquidity demand for the dollar.

The dollar on Monday initially moved higher as the escalation of geopolitical risks in Venezuela boosted safe-haven demand for the dollar after the US captured Venezuelan President Maduro, and US President Trump said the US plans to temporarily “run” Venezuela. Hawkish comments on Monday from Minneapolis Fed President Neel Kashkari were supportive of the dollar after he said, US interest rates may be “close to neutral” for the economy. 

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