Service sector PMIs

Somewhat Softer Dollar

October 4, 2017

The dollar overnight lost 0.6% against the peso, 0.5% relative to the Aussie dollar and yen, 0.4% versus the the kiwi, 0.3% against the the euro and loonie and 0.2% against the Swiss franc and sterling. President Trump, who travels to Las Vegas, is said to be closer to making a decision on his appointment […] More

Disappointing U.S. News Including Latest Purchasing Manager Surveys

September 6, 2016

U.S. data released today reinforce the view of those analysts who do not expect the federal funds rate to be increased later in September.  First, the Federal Reserve’s proprietary labor market conditions index fell 2.0 points, swinging from a reading of +1.3 to a 3-month low of -0.7 in August. Secondly, the IBD/TIPP index of […] More

Active Day in Spite of North American Labor Day Holiday Closures

September 5, 2016

A less fearful mood surrounds the U.K. after the service sector purchasing managers index for the British economy shot up 6.5 points to a reading of 52.9, a 3-month high, in August. Britain’s composite PMI of 53.6 after 47.5 in July constitutes a 5-month high. Sterling touched a 7-week high and is 0.2% firmer than […] More

Sub-$40 Oil Spreads Gloom to Other Markets

August 3, 2016

WTI oil got a little bounce after yesterday’s drop but remains below the critical $40 level at $39.85 per barrel. Rippling damage from the U.K. Brexit vote in June was evident in the U.K. services purchasing managers survey, which slumped to an 88-month low of 47.4 in July from 52.3 in June and 53.5 in […] More

Sterling and Oil Slammed…Funds Seeking Bonds and Yen

July 5, 2016

The dollar rose 1.7% against sterling but fell 0.9% relative to the yen.  The greenback has also risen 1.0% against the loonie, 0.9% relative to the Aussie dollar and kiwi.  Dollar/euro and dollar/Swiss are little changed. Commodities are sinking except in the case of precious metals like gold and silver.  West Texas Intermediate oil fell […] More

Gold and Yen Stronger but Stocks, Bond Yields, and Emerging Market Currencies Decline

April 5, 2016

The yen is 0.6% stronger on balance, powered by a fresh wave of safe-haven seeking capital flows.  Many service sector PMI reports were disappointing.  Japan’s index and its composite PMI fell to one-year lows, for example.  The yen touched 110.26 per dollar, its most appreciated level since October 2014.  Comex gold rose 1.3% to $1,231.59.  […] More

Service Sector Activity Slowed Last Month in Eurozone and U.S.

March 3, 2016

The U.S. purchasing managers index for non-manufacturing, which is compiled by the Institute of Supply Management and shown in the comparative table below, slipped 0.1 point to 53.4 in February.  Although representing just a marginally slower activity pace than in January, such was the fourth straight drop in the index, which stood at 58.3 four […] More

Stronger Euro, Weaker Yen

March 3, 2016

The dollar rose as high as JPY 114.28 overnight, its strongest level since February 15.  It’s off that high currently but still up 0.4% on balance.  At the same time, the U.S. currency shows overnight losses of 0.6% against the New Zealand and Australian dollars, 0.4% versus the euro, 0.3% relative to the Swiss franc […] More

ECB Delivers Less Support than Expected, Sending Euro Sharply Higher

December 3, 2015

ECB officials, who had strongly hinted that significant additional monetary policy relief is imminent, failed to meet the market’s expectations.  Largely in response, the dollar recorded an  overnight drop of 2.1% against the euro and 1.7% versus the Swiss franc.  Share prices in Europe are down 3.0% in France, 2.8% in Germany, 2.0% in Spain, […] More

Services PMI Spread Between U.S. and Eurozone Widened Sharply in July

August 5, 2015

The ISM reported a 4.3-point increase in the U.S. non-manufacturing purchasing managers index (PMI) to 60.3, highest since November.  Euroland’s services PMI, in contrast, fell 0.4 points last month to a two-month low.   The resulting PMI differential between the two economies therefore climbing to an 8-month high of 6.3.  This augmented U.S. advantage more than […] More