Chicago PMI Data Suggests USD Sentiment Neutral, GBP Bearish, and EUR Neutral in Short-Term Trading

One Million Trade - 2024-02-29 14:45:00

Currency sentiment: USD - Neutral, GBP - Bearish, EUR - Neutral

Reference time frame: Short-term

The recently released Chicago PMI data for February came in lower than both the previous and forecasted figures, indicating a slowdown in manufacturing activity in the region. This could potentially have a negative impact on the US dollar as it suggests a weakening in the manufacturing sector, which is a key driver of economic growth.

On the other hand, the British pound has been under pressure due to the negative GDP figures for the fourth quarter of last year, indicating a contraction in the UK economy. This, coupled with high inflation levels, could further weigh down on the pound.

Meanwhile, the euro remains neutral as German CPI and GDP data show mixed results, with inflation ticking up slightly but GDP contracting in the fourth quarter. The European Central Bank's monetary policy stance and economic outlook will be crucial in determining the future direction of the euro.

Overall, the short-term sentiment for the US dollar is neutral, while the British pound is bearish and the euro remains neutral. Traders and investors will closely monitor further economic data releases and central bank decisions to gauge the direction of these benchmark currencies.