The dollar is turning in a mixed performance against its major competitors late Monday afternoon, but is little changed overall. The currency is nearly flat despite the release of a pair of better than expected economic reports this morning. Traders seem reluctant to make any significant moves ahead of the release of key economic data in the coming days.
As the Federal Reserve suggested a December interest rate hike remains a possibility, traders are likely to keep a close eye on the monthly jobs report due out on Friday. The strength of the jobs report could have a significant impact on expectations regarding whether the Fed will raise rates next month.
Activity in the U.S. manufacturing sector saw a slight expansion in the month of October, according to a report released by the Institute for Supply Management on Monday.
The ISM said its purchasing managers index edged down to 50.1 in October from 50.2 in September, although a reading above 50 still indicates growth in the manufacturing sector. Economists had expected the index to dip to 50.0.
With spending in private and public construction both increasing, the Commerce Department released a report on Monday showing that U.S. construction spending rose more than expected in September.
The report said construction spending climbed 0.6 percent to an annual rate of $1.094 trillion in September from the revised August estimate of $1.088 trillion. Economists had expected spending to rise by 0.4 percent.
The dollar hit a low of $1.1052 against the Euro Monday, but has since bounced back to around $1.1015.
Eurozone manufacturing activity growth exceeded initial estimate in October, final data published by Markit showed Monday. The Purchasing Managers’ Index for the manufacturing sector rose to 52.3 in October from 52 in September. The reading was above the flash score of 52.
Germany’s manufacturing sector grew at the slowest pace in three months in October, final data from Markit showed Monday. Nonetheless, the pace of growth exceeded initial estimate. The headline factory Purchasing Managers’ Index slid to 52.1 in October from 52.3 in September as production and employment growth slowed. The reading was above the flash score of 51.6.
The French manufacturing sector logged a slight growth in October, final data published by Markit showed Monday. The manufacturing Purchasing Managers’ Index remained unchanged at 50.6 in October. It was slightly below the flash score of 50.7.
The buck slipped to a low of $1.5496 against the pound sterling Monday, but has since rebounded to around $1.5415.
British manufacturing activity expanded at the fastest pace in sixteen months in October, as output and new order growth accelerated, figures from the Chartered Institute of Procurement & Supply and Markit Economics showed Monday.
The seasonally adjusted Purchasing Managers’ Index, or PMI, climbed notably to 55.5 in October from 51.8 in September, which was revised down from 51.5. Economists had expected the index to fall slightly to 51.3.
The greenback has climbed to around Y120.740 against the Japanese Yen, from an early low of Y120.252.
The material has been provided by InstaForex Company – www.instaforex.com