The Greenback hammered after a weak ISM manufacturing index and dovish comments from Bullard

Daily Currency Update

USD - United States DollarThe Greenback was under pressure yesterday and has fallen over 0.4 percent from the peak of the day when the Federal Reserve Bank Chief of St. Louis James Bullard, who is known to have a dovish monetary policy stance, called for a 50 basis points cut. He said, "We are too high," regarding rates. He added, "…in this situation I would respect the market signal," and, "We should have a robust debate about moving 50 basis points at this meeting." Additionally, he noted,“…it would be better in my mind to go ahead and get realigned right now," rather than moving a quarter-point in September and again in October. The U.S. dollar fell when the ISM manufacturing index recorded the first sub-50 reading since the summer of 2016. Some sophisticated market participants, such as investment banks, have downgraded their global growth forecasts, including the American one. The ISM manufacturing index has historically been one of the best leading economic indicators and with new tariffs coming into effect and the global backdrop continuing to weaken as the threat of a recession rises. On the flip side, Federal Reserve Bank of Boston President Eric Rosengren said the U.S. economy remains, "relatively strong," and, "If the consumer continues to spend, and global conditions do not deteriorate further, the economy is likely to continue to grow around 2 percent," despite clearly heightened risks. Rosengren is known as a hawkish Fed official.