USD Weekly Review (Sept. 2 – 6)

The Greenback takes a big “L” this week on fading geopolitical fears on the U.S.-China trade war and not-so-hot economic updates from the U.S.

Overlay of USD Pairs: 1-Hour Forex Chart

United States Headlines and Economic data

Tuesday:

U.S. manufacturing PMI lowest for almost a decade as export decline intensifies
The US manufacturing sector contracted in August, according to ISM survey
Trump warns China against dragging its feet in trade talks
U.S. construction spending edges up in July
Fed’s Bullard says “aggressive” step needed to align Fed with markets, insure against trade war
Fed’s Rosengren sees elevated risks to ‘benign’ US economic outlook

Wednesday:

NY Fed President John Williams says low inflation is ‘the problem of this era’
U.S. trade deficit shrinks, but shortfall with China widens
New York Current Business Conditions recovered from the 3+ year low of 43.5 reported in July to reach a 4 month high of 50.3 in August
U.S. economy growing modestly as trade war dents activity: Fed
Fed officials warn consumer is alone in carrying U.S. economy
Fed’s Kashkari: Rate cuts a ‘poor tool’ to undo trade war harm
Fed’s Williams sees ‘less rosy’ outlook for U.S. economy
Hong Kong tensions ease, China signals stimulus – the reduction of geopolitical and economic fears from Asia seems to have been the catalysts for a major turn in global risk sentiment, pushing traders out of safe havens like the U.S. dollar

Thursday:

Fed’s Evans says limits on trade, immigration could slow U.S. growth
U.S.-based employers ramped up the pace of downsizing in August to cut 53,480 jobs, up 37.7% from July’s total of 38,845
U.S. companies add most jobs in four months, ADP data show
IHS Markit US Services PMI: Slowest increase in new business since March 2016
August 2019 Non-Manufacturing ISM 56.4 vs. 53.7 in July
China and US agree to meet in October for trade negotiations – this headline was the catalyst for further global risk-on sentiment and U.S. dollar weakness (with exception to the Japanese yen) as it broke the rising tensions between the two major economies that grew over the past few week with the rise in tariffs.

Friday: