The dollar is losing ground against all of its major competitors on Monday. The move has become more pronounced following the release of the disappointing ISM non-manufacturing data. The Senate is scheduled to vote on the nomination of Janet Yellen as the Federal Reserve Chairman this evening. Investors will be watching for the release of the all important U.S. jobs report for December on Friday.
With orders for transportation equipment showing a notable rebound, the Commerce Department released a report on Monday showing that new orders for U.S. manufactured goods rose by slightly more than expected in the month of November.
The report said factory orders increased by 1.8 percent in November following a revised 0.5 percent decrease in October. Economists had expected orders to rise by 1.6 percent compared to the 0.9 percent drop that had been reported for the previous month.
Activity in the U.S. service sector unexpectedly grew at a slower rate in the month of December, according to a report released by the Institute for Supply Management on Monday.
The ISM said its non-manufacturing index edged down to 53.0 in December from 53.9 in November, although a reading above 50 still indicates growth in the service sector. With the drop, the index fell to its lowest level since hitting 52.8 in June. The modest decrease came as a surprise to economists, who had been expecting the index to creep up to a reading of 54.8.
The dollar rose to a 1-month high of $1.3588 against the Euro early Monday, but has since pulled back to around $1.3645.
Eurozone investor confidence improved sharply in January to the highest since April 2011, a monthly survey by the think tank Sentix showed on Monday. The sentiment index rose by 3.9 points to 11.9 in January.
Eurozone’s private sector growth accelerated as estimated in December, supported by strong performance by the manufacturing sector, final data released by Markit Economics revealed Monday.
The seasonally adjusted composite output index, which measures performance of manufacturing and service sectors, rose to a three-month high of 52.1 in December from 51.7 in November. The outcome matched the flash estimates.
German private sector growth slowed more than estimated initially in December, detailed results of a survey by Markit Economics showed Monday. The headline composite output index, that measures combined performance of the country’s manufacturing and services industries, fell to 55 in December from 55.4 in November. The flash survey report published on December 16 showed a higher reading of 55.2.
Germany’s EU harmonized inflation weakened more-than-expected in December, latest data revealed Monday. The harmonized index of consumer prices (HICP), measured under the EU methodology, increased by 1.2 percent in December from the corresponding month of last year, following a 1.6 percent gain in November. Economists had forecast a 1.4 percent growth for December.
The French service sector contracted less than estimated in December, final data from Markit Economics showed Monday. The final Services Activity Index fell to 47.8 in December, a 6-month low, from 48.0 in November. The flash reading for December was 47.4.
The British government should cut spending by another GBP 25 billion over two years after the 2015 general election, Chancellor George Osborne said in a speech in Birmingham on Monday. The government needs to reduce spending by GBP 17 billion this year and GBP 20 billion next year.
According to the current forecasts, GBP 12 billion of further welfare cuts are needed in the first two years of next Parliament, he said.
The greenback rose to over a 1-week high of $1.6336 against the pound sterling early Monday, but has since retreated to around $1.6400.
The U.K.’s service sector activity slowed unexpectedly in December as new order growth eased, a survey by Markit Economics and the Chartered Institute of Purchasing and Supply (CIPS) showed Monday. The headline business activity index fell to a six-month low of 58.8 in December from 60 in November. Economists had forecast the index to rise to 60.5.
The buck reached an early high of Y104.938 against the Japanese Yen on Monday, but has since fallen to around $1.104.370.
Japan’s services business activity expanded for the fourteenth successive month in December, Markit Economics reported Monday. The headline Business Activity Index rose to 52.1 from November’s three-month low of 51.8. This reading signaled a small acceleration in the rate of business activity growth and continued the longest sequence of expansion to date.