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Economic data insignificant for USD exchange rates

Chicago PMI recorded a significant fall in November and stood at 48.7. At a disaggregate level, the production stood at 50.9 against 63.4 in previous month, new orders at 44.1 against 59.4.

The Federal Reserve expects the inflation rate to increase as it is remain relatively low. The labor market shows positive sign; hence, consumer prices are expected to increase.

"However, real economic data has become increasingly insignificant for the USD exchange rates anyways. Certainly as long as they do not point towards a significant weakening of the economy, which we do not expect", says Barclays in a research note. 

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