The US Dollar has recouped some of its losses against the Pound due to the release of better-than-expected ISM non-manufacturing PMI data.
The report released by the Institute for Supply Management showed that the services sector in the world’s largest economy saw activity pick up in October, defying expectations for a decline in the wake of the fiscal impasse and federal government shutdown earlier in the month.
According to the ISM data its service index improved from the 54.4 recorded in the previous month to 55.4. Economists had been widely expected the figure to have declined to 54.0. Any figure above 50 indicates expansion whereas below means contraction.
Today’s data comes just days after the ISM released its national factory orders report which showed that manufacturing in the country soared by its fastest pace in more than two years. The ISM data is coming in more positive than many economists initially predicted.
Investors remain uncertain as to when the Federal Reserve will announce a cut back to its $85 billion per month quantitative easing programme as recent data has been decidedly mixed.
Earlier in the session the ‘Greenback’ fell against the Pound after data showed that the UK’s services sector expanded at its fastest pace in 16 years. Against the Euro the Dollar soared after the European Union revealed that it had cut its growth forecast for the Eurozone. Expectations are also growing that the European Central Bank will introduce new stimulus measures in order to assist the region’s faltering economic recovery.
Investors will now be turning their attention to Thursday when the latest unemployment data and initial GDP report is released. A strong showing in both is likely to see investors increase their bets that the Fed will cut sooner rather than later, strengthening the Dollar.
The Canadian Dollar meanwhile was weaker against the Pound and little moved against its US relation as investors await the release of data which is expected to show the strength of the nation’s economy. The currency was weighed down after the Bank of Canada cut its growth forecasts and as Canada’s biggest export of crude oil fell to its lowest level since June.
US Dollar (USD) Current Exchange Rates
The US Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6227
The US Dollar/Euro Exchange Rate is currently in the region of: 0.7403
The US Dollar/ Canadian Dollar Exchange Rate is currently in the region of: 1.0433
The Pound Sterling/US Dollar Exchange Rate is currently in the region of: 1.6058
The Euro/ US Dollar Exchange Rate is currently in the region of: 1.3508
Current Canadian Dollar (CAD) Exchange Rates:
The Canadian Dollar/US Dollar Exchange Rate is currently in the region of: 0.9584
The Canadian Dollar /Euro Exchange Rate is currently in the region of: 0.7095
The Canadian Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.5968
The Pound Sterling/Canadian Dollar Exchange Rate is currently in the region of: 1.6754
The US Dollar/ Canadian Dollar Exchange Rate is currently in the region of: 1.0433
The Euro/Canadian Dollar Exchange Rate is currently in the region of: 1.4094
(Correct as of 15:30 pm GMT)
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