The published data on USD Industrial Production for February shows no growth compared to the previous month, which could indicate a stagnation in the industrial sector. This data, combined with the low ISM Manufacturing PMI and Durable Goods Orders for January, suggests a weakening in manufacturing activity. This could potentially lead to a decrease in production levels, impacting job creation and overall economic growth. The Federal Reserve may take this into consideration when making decisions on interest rates and monetary policy, potentially opting for a more dovish approach to stimulate economic activity.
Currency sentiment: Bearish on USD
Sentiment timeframe: Short to medium term