US dollar strengthens on PMI, construction spending
The US dollar advanced against a basket of its major peers after economic data exceeded estimates. The US manufacturing industry expanded at the fastest pace in two-and-a-half years, while construction spending picked up in October after a slow month.
The US dollar index, which tracks the performance of the greenback against its most significant trading partners, was up 0.3 percent to 80.92. American manufacturers reported gains for the sixth consecutive month, the longest streak since the first ten months of 2009. Growth in new orders and production helped boost employment across the manufacturing industry, as 15 of the 18 sub-sectors reported growth.
Construction spending in October rose 0.8 percent to $908.4 billion, a four-year high. This represents a significant increase from the first ten months of the year, when construction spending amounted to $747.0 billion. Government projects surged 2.9 percent over the prior month, with educational construction and highway construction accelerating 8.5 percent and 0.6 percent, respectively.
The US dollar advanced 53 pips against the euro, despite stronger-than-forecasted manufacturing growth in the currency region. The EURUSD fell to a session low of 1.3527 before consolidating ten pips higher. Elsewhere in Europe, the greenback erased intraday losses against the British pound, sending the GBPUSD pair to a loss of 21 pips. The pair had reached a 27-month high of 1.6438 following the release of upbeat UK manufacturing PMI.
In North America, the greenback soared to a fresh two-year high against its northern counterpart, the loonie, which was idle to start the week. The pair climbed to a high of 1.0653 before consolidating at 1.0632, a gain of 13 pips.
Broad US dollar strength helped the world’s most traded currency approach a one-year high against the Japanese yen. The USDJPY broke 1.03 for the first time since May, defying expectations the pair will remain range-bound for the next several months. The United States dollar continues to enjoy broad support amid the holiday season, as signs of domestic recovery continue to take shape.
Sorry. No data so far.