The US Dollar has strengthened by 0.81% against the Pound and by 0.77% against the Euro following the release of data which painted a mixed picture for the world’s largest economy.
The first set of data released in Thursday’s session was the latest weekly jobless claims figures which fell more than economists had been forecasting. According to the Labour Department the number of US citizens claiming unemployment benefits in the week ending December 28th fell to 339,000, better than forecasts for a fall to 344,000.
On a less volatile monthly basis the number of claimants rose from 348,750 to 357,250.
Markit’s manufacturing PMI showed that output increased in December to its fastest pace in 11-months. PMI climbed to 55.0 in December, beating November’s figure of 54.7. A figure above 50 indicates expansion and below signals contraction.
“The upturn in the PMI in December rounds off one of the strongest quarters for manufacturing since the economy pulled out of recession. The goods producing sector is therefore on course to provide a firm boost to the economy in the fourth quarter, which we expect to see growing at an annualised pace of at least 3%”, said Markit chief economist Chris Williamson.
Limiting the currencies gains was the release of the Institute for Supply Management factory index which fell to 57 in December. The figure was below November’s reading of 57.3, the highest figure recorded since April 2011.
Sterling weakened against the US Dollar and the majority of its peers after a PMI report for the UK came in below expectations and damaged sentiment over the health of the UK economy. Markit said the U.K. manufacturing PMI fell to 57.3 last month from a reading of 58.1 in November. Analysts had expected the manufacturing PMI to ease down to 58.0 in December.
US Dollar (USD) Current Exchange Rates
The US Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6086
The US Dollar/Euro Exchange Rate is currently in the region of: 0.7334
The US Dollar/ Canadian Dollar Exchange Rate is currently in the region of: 1.0595
The Pound Sterling/US Dollar Exchange Rate is currently in the region of: 1.6433
The Euro/ US Dollar Exchange Rate is currently in the region of: 1.3640
(Correct as of 15:40 pm GMT)
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