Election fever has taken over market sentiment as the days tick down until the American vote next week. However, while financial markets have been absorbed by the political developments, economic conditions continue to show improvement, with the manufacturing sector expanding at its fastest pace in over a year. According to the official US Manufacturing Purchasing Managers Index released on Tuesday, the PMI rose to the highest since October of 2015. Adding to the optimism was the ISM PMI notching its best performance since July, with both figures firmly in expansionary territory. Although positive on a headline basis, stocks and the US dollar were hurt by polls showing Republican candidate Donald Trump pulling into the lead. The result was a steep decline in the US dollar which sent silver storming to the upside, marking the biggest move in weeks.
US Dollar Slides Despite Manufacturing Gains
Daily Analysis - 02/11/2016