USD Pressured After Fed Survey

Last Friday, the dollar continued its two-week slide against the Euro following a Philadelphia Federal Reserve survey indicating that the U.S. economy is in fact slowing down. The negative survey was the first in three years and it indicates a notable drop in mid-Atlantic manufacturing. The survey also indicates a slump in housing that is permeating other segments of the U.S. economy. This strengthens the notion that the Federal Reserve cannot afford another rate hike. Last week would have seen the 18th straight rate hike had the Federal Reserve chosen to raise rates. Instead the 5.25 rate was left unchanged.

The market saw movement into the Swiss franc last Friday, indicating uneasiness with emerging markets. The observation that the dollar was not seen as a safe haven for risk-averse traders might be seen as an indication of a global perception of pressure on the dollar.