USD: PMI figures come in below expectations but still show strong growth

After an extremely quiet day on Thursday (owing to the fact it was Thanksgiving), it was business as usual on Friday with the release of the PMI readings for the manufacturing, composite and services sectors. Somewhat surprisingly, all three came in below expectations which served to dent the recent optimism surrounding the US economy.

Having said that, all figures came in above 50.0 which shows the sectors are still growing, so there is nothing to be too concerned with just yet. Manufacturing PMI came in at 53.8, down from 54.6 in October and below expectations of a rise to 54.8; services PMI fell from 55.3 to 54.7 in November, while composite PMI dipped from 55.2 to 54.6. The dollar weakened against sterling and the euro in response.

Today we have the new home sales, while on Wednesday we have the GDP growth for the third quarter. Thursday sees the release of the personal income and spending figures for October, and we have the manufacturing PMI figures for November on Friday.

For more on currencies and currency risk management strategies, please get in touch with your Smart Currency Business trader on 020 7898 0500 or your Private Client trader on 020 7898 0541.