Chuck Mikołajczak
NEW YORK (Reuters) – The euro fell to a two-year low, the dollar gained on Friday after indicators of business activity in every region were released and bitcoin hit a record high again as it continued its march towards the $100,000 level.
S&P Global’s preliminary Eurozone Composite Purchasing Managers’ Index for the euro zone fell to a 10-month low of 48.1 in November, below the up-from-decline level of 50 and the 50.0 estimate.
Moreover, the British PMI fell to 49.9 in November from 51.8 in October. The government’s plan to raise corporate taxes has contributed to the first decline in private sector activity in more than a year, confirming recent signs that the economy is losing steam.
In contrast, however, S&P Global said its preliminary US Composite PMI Output Index, which tracks the manufacturing and services sectors, rose this month to 55.3, the highest level since April 2022, after readings of 54. 1 in October, with the services sector having the largest share in this sector. raises.
“This highlights the duality of the world. It’s the U.S. versus the rest, but even in the U.S. it’s services versus manufacturing,” said Brian Jacobsen, chief economist at Annex Wealth Management in Menomonee Falls, Wisconsin.
“How long can American services play catch-up with everything else?”
The dollar against a basket of currencies rose 0.41% to 107.50, while the euro fell 0.54% to $1.0416 after falling to $1.0333, the lowest level since November 30, 2022. The dollar was held at on track for the third consecutive week achievement.
continued its recent rally towards the $100,000 level, which has seen the cryptocurrency surge more than 40% since the US election based on expectations that President-elect Donald Trump will loosen the regulatory environment for cryptocurrencies. Bitcoin was last up 1.44% at $98,496 after hitting a record high of $99,697.17.
According to CME’s FedWatch Tool, investors have recently tempered expectations about the Federal Reserve’s rate cut path, now pricing the likelihood of a 25 basis point rate cut at the December Fed meeting at 52.7%, down from 69.5% a month ago. as they assess the impact of Trump administration legislative policies, such as tariffs, on the economy.
Other central banks such as the European Central Bank and the Bank of England are thought to be likely to become more aggressive in cutting interest rates to strengthen their economies.
Sterling weakened 0.49% to $1.2528 and was on track for a second straight weekly decline.
Some of the European Central Bank’s most influential policymakers have urged the European Union to restore long-stalled economic integration to protect its prosperity model from a looming trade war with the United States.
Investors are waiting for Trump to appoint a treasury secretary. On Thursday, the Wall Street Journal reported that Trump had floated the idea of appointing Kevin Warsh, a former member of the Fed’s board of governors, to the position, with the understanding that he might later become Fed chairman.
Against the Japanese yen, the dollar strengthened by 0.12% to 154.69. The yen fell below 156 per dollar last week for the first time since July, raising the possibility that Japanese authorities will take steps to strengthen it again.
Annual core inflation in Japan was 2.3% in October, keeping pressure on the central bank to raise still low interest rates.
Just over half of economists in a Reuters poll believe the Bank of Japan will raise interest rates in December, partly because of concerns about a depreciating yen amid an improving economy.
