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Concerns regarding US Growth Cloud Outlook


The EURUSD is at the center of this week’s focus as concerns about US and European Union economic growth cloud the outlook.

Markets get ready for FOMC Minutes 

On the US Dollar side of the currency pair, the FOMC Minutes will be published later today with more insights into the central bank’s economic outlook and monetary policy stance. The Federal Reserve stopped accelerating interest rate increases in December. However, this does not mean that monetary policy will be less restrictive. The USD could react depending on how the Minutes are written.

The Fed uses economic data to determine interest rates. Therefore, it should be concerned about developments in the manufacturing sector. 

The US manufacturing sector is in good health

The ISM Manufacturing Purchasing Managers Index PMI (ISM Manufacturing Purchasing Managers Index) will be released later today. This index should give a snapshot about the health of the US’s manufacturing sector.

December’s manufacturing PMI is 48.5, which compares to November’s 49. This indicates that this sector has seen further contraction. November’s figures showed the first decline in manufacturing output since May 2020, with an across-the-board slip in new orders, supplier deliveries, order backlog and employment.

If there’s anything surprising in the…

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