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Slower manufacturing growth and Fed rate cut indications in US ready to drag US dollar down
Mike Moran
Jan. 2, 2008
The manufacturing growth in US is slowing down rapidly. The factors contributing to slower growth is from stalling real estate construction, moderate defense spending compared to one-year earlier and higher gasoline price affecting consumer confidence.
The dollar fell against the euro, extending last year's 10 percent decline, on concern evidence of a U.S. manufacturing slowdown will give the Federal Reserve more reason to lower interest rates.
The Euro dollar futures show signs lower short-term rates. The gold is moving higher and dollar is slumping.
The U.S. currency weakened against 13 of the 16 most-actively traded currencies today as traders bet the central bank will reduce borrowing costs at least twice more in 2008.
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