Dollar rebound eases amid manufacturing concerns and upcoming key data – London Business News | Londonlovesbusiness.com

The U.S. dollar has taken a breather after a rebound, as traders remain cautious due to concerns surrounding the U.S. manufacturing sector.

The latter continues to contract despite an improvement as shown by yesterday’s data. Additionally, the anticipated 1% decline in U.S. Durable Goods is adding to the cautious outlook. The data is scheduled for release today and could strongly influence the market.

If the data comes in weaker than expected, the dollar could come under pressure as traders price in the impact of lower sales on production levels and economic growth.

Looking ahead, next week’s key reports, including GDP growth, core PCE, and Non-Farm Payrolls, will play a pivotal role in shaping the dollar’s path. If data shows a stronger-than-expected economy and a robust labor market, the greenback may find renewed momentum. However, uncertainty surrounding the upcoming elections could limit its gains.