The US Dollar continues to try to shake off its recent downtrend on the back of disappointing economic news out of the United Kingdom and the Eurozone. A decline in factory output in the UK and the German PMI report which, though improved, still points to a contracting sector, have put pressure on the Pound and Euro, respectively. On the whole, analysts expect that FX traders may tread warily as regards the US Dollar, especially given the importance of 2020 as a presidential election year. The strained relationship between the US and China is also contributing to investors' unease.
In Asian trade at 11:32 am in Tokyo, the GBP/USD was trading at $1.3141, a gain of 0.0122% and off the session trough of $1.31254; the high was recorded at $1.31685. The EUR/USD was also higher at $1.1175, up 0.0376%; the pair has ranged from $1.11673 to $1.11789. The USD/JPY was at 108.0750 Yen, down 0.4293%.
Key Data Eyed
Later today, given the light trade and the lack of economic market movers, traders will focus on inflation data from Germany; analysts are predicting that the Harmonized Index of Consumer Prices will show a slight improvement 1.4% in December on an annualized basis. In the US, a recent poll suggests that the ISM Manufacturing Survey for December is likely to be higher at 49, up from a 48.1 reading in November. The Federal Reserve minutes of its latest policy meeting is also set to be released; market traders look to the minutes for clues as to monetary policy changes.