Dollar a little firmer

The dollar is a little firmer against the euro at the start of this week, trading at around $1.1025, having gained some ground on Friday after the release of stronger than consensus economic data out of the United States. The pound, meanwhile, briefly weakened to just over 86p against the single currency following weak data in the UK but it has since come back to close to 85.5p, and has also regained lost ground against the dollar to trade just shy of $1.29 this morning

The Purchasing Mangers Index (PMI) of manufacturing activity in the US rose for a third consecutive month in November to stand at 52.2 (the the 50 level represents the expansion-contraction level for activity), pointing to a change of fortune for the sector which has been under pressure on account of the impact of the US-China ‘trade war’

In contrast, the Composite PMI in the UK fell to 48.5 this month, with both the manufacturing and services indices running below 50, which suggests the economy has weakened again in the final quarter of the year after rebounding in the third quarter (from a soft second quarter)

Completing the picture, the Composite PMI for the Euro Area continued to hover just above the 50 level in November, pointing to continuing very subdued albeit still positive GDP growth in the zone. Meanwhile, the ECB Chief Economist, Philip Lane, says the central bank still has room to cut interest rates further and is prepared to cut them if that is what is needed,

Ahead of Thanksgiving Day on Thursday, there are a number pieces of US economic data due including GDP (Q3, 2nd estimate), consumer spending and PCE inflation on Wednesday. In the Euro Area, CPI inflation and unemployment are scheduled for Friday