The US Dollar has strengthened against the Euro but remained softer against Sterling after data showed that service sector activity in the US grew at a faster than expected rate in July, surging to a five-month high.
According to the Institute for Supply Management its non-manufacturing Index increased to 56 in July, up from the 52.2 recorded in June. Economists had been expecting Monday’s data to come in at 53. Any number above 50 indicates that the non-manufacturing sector economy is showing signs of expansion.
The service sector figure surpassed even the high end of forecasts and matched what had been the high for the year reached in February.
The data lends support to signs that economic growth in the world’s largest economy will continue to strengthen in the second half of the year. Last week’s ISM manufacturing data showed that the sectors growth rose to hit a two-year high in July.
As a result of the data release the Dollar strengthened against the Euro with the EUR/USD currency pair shedding 0.31% to trade in the region of 1.32.
Service industries in the rest of the world are showing signs of stabilizing. In the U.K., services growth accelerated in July at the fastest pace in more than six years, according to figures today from Markit Economics and the Chartered Institute of Purchasing and Supply. The better than expected result saw Sterling hold its gains against the US currency.
Current US Dollar (USD) Exchange Rates
The US Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6506
The US Dollar/Euro Exchange Rate is currently in the region of: 0.7529
The US Dollar/Australian Dollar Exchange Rate is currently in the region of: 1.1226
The US Dollar/Japanese Yen Exchange Rate is currently in the region of: 98.3964
The US Dollar/Canadian Dollar Exchange Rate is currently in the region of: 1.0384
(Correct as of 15:50 pm GMT)
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