US S&P Global Manufacturing PMI declines to 51.8, Services PMI falls to 52.9 in December

US S&P Composite PMI declined in December but held above 50.
US Dollar Index stays under bearish pressure, fluctuates slightly below 98.00.

Eren Sengezer FXStreet

The business activity in the United States' (US) private sector continued to expand in December, albeit at a softer pace than it did in November, with the S&P Global Composite Purchasing Managers' Index (PMI) declining to 53 from 54.2.

In this period, the Manufacturing PMI declined to 51.8 from 52.2, while the Services PMI fell to 52.9 from 54.1.

"The flash PMI data for December suggest that the recent economic growth spurt is losing momentum. Although the survey data point to annualized GDP expansion of about 2.5% over the fourth quarter, growth has now slowed for two months," said Chris Williamson, Chief Business Economist at S&P Global Market Intelligence.

"Firms have also lost some confidence in the outlook and have restricted their hiring in December in accordance with the more challenging business environment," Williamson added.

Market reaction

The US Dollar Index stays on the back foot after the PMI data and was last seen losing 0.3% on the day at 97.96.

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.

AUD/USD consolidates near 0.7000 as USD stays weak

AUD/USD holds steady above 0.7000 during Thursday’s Asian session, consolidating the previous day’s recovery gains from a near three-week low as the Democratic sweep in the US midterm elections and Iran diplomacy hopes continue to weigh on the US Dollar. Bulls, however, seem hesitant as focus shifts to Friday’s crucial US NFP report.

USD/JPY drifts lower to 158.25 on hawkish BoJ Minutes, weak USD

USD/JPY trades with a negative bias for the second straight day on Thursday as hawkish BoJ Minutes, showing members agreed to keep raising rates, and intervention risks support the Japanese Yen. Meanwhile, US midterm election results and hopes for Iran diplomacy keep the US Dollar depressed as focus shifts to Friday’s US NFP report.

Gold pops to two-week highs near $4,150

Gold builds on Wednesday’s sharp rebound and flirts with the $4,150 mark per troy ounce on Thursday. The precious metal extends it recovery on the back of the irresolute price action of the Greenback and mixed US Treasury yields following the US midterms elections.

TRUMP token hits record low amid mounting selling pressure

Ripple and Stellar extend their recovery as bearish pressure begins to ease for both altcoins. XRP trades above $1.30 after breaking above the upper trendline of a falling channel pattern, while XLM holds above $0.168 and approaches resistance at $0.173. Meanwhile, improving derivatives metrics and strengthening momentum indicators hint at a potential for further recovery.

NFP stress test: Six payrolls releases, measured in daily-loss limits

Friday's US employment report is usually previewed in terms of the headline number and the reaction in the Dollar. For a growing group of traders, those running funded or evaluation accounts with a fixed daily loss limit, there is a more practical question: how much of that limit can the first hour consume, regardless of direction?

US Dollar breaks below 101.50 as Democrats sweep Congress

The US Dollar (USD) comes under heavy selling pressure on Wednesday, with the US Dollar Index (DXY) falling around 0.5% to trade near 101.35 after sliding below the 101.50 level. The Greenback retreats to its lowest level in four weeks as investors reassess the political and economic outlook following the Democratic Party's sweeping victory in the United States (US) midterm elections.