The US Dollar weakened against the Pound, Euro and other major peers on Monday afternoon after data showed that the USA’s service sector suffered an unexpected slowdown in December and new orders fell for the first time since 2009.
According to the Institute for Supply Management’s its non-manufacturing Purchasing Managers Index fell to a surprise six-month low of 53 in the last month of 2013, down from the previous months figure of 53.9. The figure took economists by surprise and knocked confidence by coming in below forecasts for a reading of 54.7.
Any figure above 50 indicates expansion whereas below 50 indicates a contraction.
Earlier in the session a separate PMI report compiled by HSBC came in below forecasts.
“There’s still a valid question of the impact of rising interest rates on the broader economy though housing is still expanding, the pace of growth is decelerating, and the economy is clearly gaining momentum. It’s not the first time in this recovery that we’ve seen that, but this time, it seems that there are less headwinds that could derail momentum,” said a senior economist at Ameriprise Financial Inc.
In contrast and in a separate report new orders for US factory’s rebounded in November adding to signs that the US economy made a strong end to 2013. The report released by the Washington based Commerce Department showed that new orders for manufactured goods climbed by 1.8%.
The US Dollar is likely to see some volatility later tonight when Congress votes for a new Fed chairman. It is expected to confirm Janet Yellen to become the new chairman of the Federal Reserve.
US Dollar (USD) Current Exchange Rates
The US Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6089
The US Dollar/Euro Exchange Rate is currently in the region of: 0.7340
The US Dollar/ Canadian Dollar Exchange Rate is currently in the region of: 1.0668
The Pound Sterling/US Dollar Exchange Rate is currently in the region of: 1.6419
The Euro/ US Dollar Exchange Rate is currently in the region of: 1.3621
(Correct as of 15:40 pm GMT)
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