Dollar rebounds ahead of US manufacturing data

The US dollar rose against a basket of global currencies on Monday, resuming gains after a stall in the previous day on profit-taking from a 6-week high, ahead of important US data on the manufacturing activity during November, which provides insight on the US economic growth path during Q4, after a better-than-expected growth during Q3.

Dollar index rose by 0.1% to 98.38 points, after opening at 97.27, and hit an intraday low of 97.27.

The US dollar fell by 0.1% on Friday, on profit-taking from a 6-week high of 98.54 points.

During November, dollar gained 1%, posting its fourth monthly gain in 5 months, due to positive developments in trade talks between the US and China.

The monthly gains were buoyed by the continue upbeat US economic data, which ebbed odds that the US Federal Reserve will cut interest rates for the fourth time this year.

Investors are anticipating later today the release of the important US data for the manufacturing sector, which is one of the most important sectors in the US.

The US manufacturing PMI reading for November will be released later today, with forecasts to 52.2 points in line with the preliminary reading, in addition to the ISM manufacturing PMI reading, which is expected to reach 49.2 in November vs. 48.3 in October.