Yesterday’s high: $1.3353
Yesterday’s low: $1.3283
US Dollar Tumbles as PMI Projections Fall Short
While typically not as influential as ISM’s PMI prints, Markit’s US PMI projections for November were published during Friday’s American session and influenced a late-week US Dollar selloff.
The manufacturing projection dropped from 54.6 to 53.8, below the expected rise to 54.8. Services dropped too, from 55.3 to 54.7. Overall the composite figure slipped from 55.2 to 54.6. Markit’s report noted that prospects for 2018 were mixed, which concerned US Dollar investors.
Despite some weak UK ecostats in recent sessions, market hopes for major progress in Brexit negotiations before the end of the year have kept Sterling buoyed.
USD Outlook: US Growth Data in Focus
More US growth data will be published over the course of the next week, as well as personal income, personal spending and personal consumption figures, which could all affect the near-term Federal Reserve outlook.
Following Markit’s underwhelming US PMIs, if US growth from Q3 or ISM’s manufacturing PMI for November come in below expectations it could worsen market concerns about a possible slowdown in the US economic outlook.
As for Sterling, Brexit news is likely to take focus again, especially if UK and EU negotiators take part in another round of negotiations. Any further signs that Brexit progress could accelerate over the coming month would boost the Pound.
15:00 US New Home Sales
15:30 US Dallas Fed Manufacturing Index
07:00 UK Nationwide Housing Price
13:30 US Wholesale Inventories
09:30 UK Bank of England Consumer Credit
13:30 US Growth Rate
15:00 US Fed Yellen Speech
13:30 US Personal Consumption Expenditure Price Index
13:30 US Jobless Claims
14:45 US Chicago PMI
If you need to make a USD transfer but don’t have an account with us, click here to get started.
Senior Currency Broker
T: 01442 892 065