Home » Currency Note » Currency Note » Currency Note USD » USD: US composite PMI disappoints in December

As with the eurozone, the US released its services and manufacturing PMI for December on Friday. The composite reading dropped to 53.6 this month from 54.7 the previous month, although given any figure above 50.0 shows growth, the sectors are still performing rather well, just not quite as good as the previous period.

We also saw industrial and manufacturing production figures. Year-on-year, industrial production grew by 3.9% in November from 3.8% the previous month. On a monthly basis, the figure was 0.6% which was quite the rebound from -0.2% the previous period and much better than the 0.3% the markets had expected. Manufacturing production dropped to 2% from 2.2% in October. Retail sales came in as expected at 0.2% in November from 1.1% the previous month, but this will likely pick up around Christmas.

Tomorrow we will see housing starts and building permits for December, but things really get interesting on Wednesday. The Fed will announce its interest rate decision and will almost certainly hike rates by 25 basis points to 2.5%. This is largely priced in by the markets so any dollar strengthening on the back of this is unlikely. If, however, there are indications that rates will rise much more gradually in 2019, then some dollar weakness is very possible. That would be to the benefit of sterling, so this week could be very volatile, what with the continuing Brexit uncertainty.

For more on currencies and currency risk management strategies, please get in touch with your Smart Currency Business trader on 020 7898 0500 or your Private Client trader on 020 7898 0541.

Find out how we can help you

Let us know a little more about your upcoming currency exchange needs. We aim to take the uncertainty away by providing guidance on which services suit your individual requirements. You can then rest, assured your money is not at the mercy of the currency markets.

Protect against risk

Avoid losing money and protect against currencies moving against you.

Dedicated trader

Dedicated currency trader working with you to get the best value for your money.

Secure and efficient transfers

Secure, quick and efficient transfers. Authorised by the FCA.

  • We handle your data with care and only ever as outlined in our Privacy Policy.

Keep up to date

Get regular, jargon-free currency market updates delivered directly to your inbox.

  • We handle your data with care and only ever as outlined in our Privacy Policy.

Refer a friend or business

Recommend our services to your friends, family or colleagues and earn great rewards.

You have Successfully Subscribed!