US dollar reacts to declining Manufacturing PMI, rising Services PMI

The flash estimate for November showed the US S&P Global Composite PMI remained stable at 50.7.

The US Dollar Index was last trading slightly lower on the day at roughly 103.50, showing no immediate reaction to these data. The US Dollar Index remains below 100, hovering around 103.50.

The economic activity in the US private sector continued to expand at a modest pace in early November, with S&P Global Composite PMI holding steady at 50.7.

The Manufacturing PMI fell into the contraction territory by edging lower to 49.4 from 50.0 in the same period, while the Services PMI improved modestly to 50.8 from 50.6.

Commenting on the survey’s findings, “the US private sector remained in expansionary territory in November, as firms signaled another marginal rise in business activity,” noted Siân Jones, Principal Economist at S&P Global Market Intelligence.

“Moreover, demand conditions – largely driven by the service sector – improved as new orders returned to growth for the first time in four months”, Jones added.