Manufacturing and services business activities in the US worsened in August 2023, thereby weighing down the movement of the dollar in the forex market.

Fluctuations in various major currency pairs tend to be limited ahead of the opening of the Jackson Hole Symposium tomorrow. However, USD/JPY plunged more than 0.8% to the range of around 144.60 following the release of disappointing US economic data during the early New York session on Wednesday (August 23). The US Dollar Index (DXY) also remains constrained within the range it has occupied since the beginning of the week.

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The US Dollar Index (DXY) briefly soared to 104.00 during the European session. The release of the Eurozone and UK PMI survey results was quite poor, temporarily boosting the greenback's reputation. Unfortunately, the US PMI data released a few hours later proved disappointing.

S&P Global reported that the US Manufacturing PMI score fell from 49.0 to 47.0 in August 2023, while the Services PMI score dropped from 52.3 to 51.0. Both of them missed market expectations.

The Composite PMI score stumbled from 52.0 to just 50.4, whereas the previous consensus expected it to remain unchanged. The way to interpret PMI data typically employs the threshold of 50.0 as a reference to distinguish between expansive (>50.0) and contraction (

Chris Williamson, Chief Business Economist at S&P Global Market Intelligence, remarked that the almost stagnant business activity in August leads to uncertainties regarding the robustness of the US economic growth in the third quarter.

He also mentioned that surveys suggest the growth acceleration propelled by the services sector in the second quarter has diminished, alongside additional reductions in manufacturing output.

Nevertheless, the market's attention remains focused on the Jackson Hole Symposium scheduled for August 24-26, where the world's most influential central bank leaders gather.

Speeches from the Chair of the Fed and other central bank leaders at the event can significantly impact the financial markets. The movement of most major currency pairs will likely remain constrained until the next catalyst emerges.