US: Markit Manufacturing PMI climbs to 57.1 in December, highest since September 2014

Markit Manufacturing PMI in US rose to multi-year high in December.
US Dollar Index stays in the negative territory below 90.00.

Eren Sengezer FXStreet

The economic activity in the US' manufacturing sector expanded at its strongest pace since September 2014 in December with the IHS Markit's Manufacturing PMI climbing to 57.1 from 56.7 in November. This reading came in better than the flash estimate of 56.5 as well.

Further details of the publication showed that the Final Output Index edged lower to 58.3 from 59.2 and the Final Output Prices Index rose to its highest level since May 2011 at 58.6.

Commenting on the data, "manufacturers reported a strong end to 2020, with production and order books continuing to grow, albeit with the rates of expansion slowing as a result of rising virus case numbers and related restrictions," said Chris Williamson, Chief Business Economist at IHS Markit.

"Producers of machinery and equipment reported sustained strong demand, suggesting companies are increasing their investment spending," Williamson added.

Market reaction

The US Dollar Index showed no immediate reaction to this report and was last seen losing 0.38% on a daily basis at 89.60.

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

EUR/USD risks a deeper drop below 1.1750

EUR/USD keeps its vacillating mood in place as the the NA session drwas to a close on Tuesday, hovering below the 1.1800 hurdle amid acceptable gains in the US Dollar. In the meantime, market participants and the FX galaxy are expected to closely follow President Trump’s SOTU speech around 2AM GMT.

GBP/USD regains 1.3500 and above

GBP/USD extends its advance for the third day in a row on Tuesday, this time retesting the area beyond the 1.3500 hurdle. Cable’s uptick comes despite decent gains in the Greenback and the dovish message from the BoE’s Bailey at the UK Parliament.

Gold appears offered around $5,150

Gold is giving back a good portion of the recent multi-day rally, receding to the $5,150 zone per troy ounce amid the decent bounce in the US Dollar and mixed US Treasuty yields. In the meantime, markets’ attention remain on upcoming comments from Fed speakers.

Coinbase launches stocks and ETF trading amid ongoing plans for all-in-one platform

Coinbase has launched stocks and ETF trading for US customers on its platform, according to an X post on Tuesday. The service offers commission-free trading available 24 hours a day, five days a week, for eligible securities. Traders deposit US dollars or USDC to fund positions and access fractional shares as low as $1.

The Citrini report: How a debatable AI narrative can shake Wall Street

That AI-related headline alone was enough to rattle investors.US stocks slid sharply on Monday after a widely circulated Citrini Research memo outlined a hypothetical “2028 Global Intelligence Crisis”, warning that rapid AI adoption could push US unemployment into double digits as early as by mid-2028.

XRP pressured by weak ETF flows and declining retail interest

Ripple (XRP) is edging lower, trading above its intraday low of $1.32 at the time of writing on Tuesday. The decline from its weekly opening of $1.39 reflects heightened volatility in the broader cryptocurrency market, accentuated by tariff-triggered uncertainty.