The US dollar is weakening slightly against some of its currency rivals on Tuesday amid the broader financial markets trading relatively flat. The buck recently turned positive on the year during the intense selloff in equities. With quantitative tightening priced in, it might all about the data.
According to the Bureau of Labor Statistics (BLS), the number of job openings in the US climbed to 10.925 million in December, up from 10.775 in November. The market had anticipated a reading of 10.3 million. Most of the gains were concentrated in accommodation and food services, information, and education. Most of the declines were situated in finance and insurance and wholesale trade.
BLS data also show that the number of quits declined to 4.3 million last month, easing from a record high of 4.5 million in November. Quits increased primarily in non-durable goods manufacturing, while they eased in healthcare, accommodation and food services, and construction.
The manufacturing sector weakened again in January, with the Institute for Supply Management’s (ISM) manufacturing purchasing managers’ index (PMI) sliding to 57.6 in January, down from 58.8 in the previous month. But the market did pencil in a reading of 57.5.
The monthly snapshot of the manufacturing sector found rising employment, falling new orders, and surging prices.
Meanwhile, the IHS Markit manufacturing PMI fell to 55.5 in January, down from 57.7 in December. This was also slightly higher than the 55 forecast.
Later this week, the non-manufacturing PMI numbers will be released, as well as the January jobs report.
On Tuesday, the US Treasury market was mostly mixed, with the benchmark 10-year yield up 0.009% to 1.791%. The one-year bill slipped 0.008% to 0.775%, while the 30-year bond added 0.026% to 2.124%.
The US Dollar Index (DXY), which gauges the greenback against a basket of currencies, tumbled 0.15% to 96.40, from an opening of 96.70. The index is up 0.45% year-to-date.
The USD/CAD currency pair slid 0.1% to 1.2695, from an opening of 1.2709, at 17:21 GMT on Tuesday. The EUR/USD climbed 0.09% to 1.1245, from an opening of 1.1235.