Dollar falls across the board after downbeat US Manufacturing PMI
The US dollar was sharply lower against its major counterpart in early American session on Tuesday, following downbeat US Manufacturing PMI data (Sep 47.8 vs 50.4 f/c), hitting the lowest since 2009.
Weak numbers signal contraction and fuel expectations for Fed rate cut.
The EURUSD pair jumped above 1.09 handle and hit session high at 1.0921, after posting new 28-month low at 1.0878 earlier today.
Overall outlook remains bearish as initial barriers are still intact and more work to the upside is needed to soften bearish grip.
The USDJPY eased to daily low at 107.87 after data, extending pullback after bulls faced strong headwinds at key 108.47 barrier.
Spot gold regained ground on weaker dollar and bounced nearly $20 from today’s new two-month low at $1459.
Dow-Jones, Nasdaq and S&P 500 turned red after weak US data (Dow fell from 27000 zone to 26740; Nasdaq slipped from 7820 to 7738, while S&P 500 eased from 2991 (pre data high) to 2961 (session low).