Recent economic data underscores the evolving dynamics of global markets, with the US dollar strengthening on the back of positive surprises and a favourable economic outlook.
US Jobless Claims Hit 8-Month Low
The latest US weekly initial jobless claims fell to an eight-month low of 211k, outperforming the forecasted 222k. While seasonality may have influenced the data, it highlights the resilience of the US labour market.
Additionally, the US manufacturing PMI was revised higher for December, contrasting with downward revisions for both the Eurozone and UK PMIs, which remain in contraction territory.
Dollar Dominates Currency Markets
The US dollar strengthened significantly yesterday:
- Rising 0.8% against the euro.
- Gaining more than 1% against sterling.
This surge was driven by better-than-expected US data, a stronger GDP outlook, and optimism surrounding the potential policy mix of the Trump administration. These factors have reinforced confidence in the dollar, putting pressure on other major currencies.
What to Watch Today
Markets are now focused on the US manufacturing ISM for December, a key release that could further influence sentiment and currency movements. Meanwhile, remarks by ECB Chief Economist Philip Lane are expected to provide insights into the Eurozone’s economic trajectory and policy direction.
How Could This Impact Your Business?
The stronger dollar and diverging economic conditions highlight the importance of staying informed. Whether you’re managing international payments or navigating currency risks, understanding these trends is essential.
Contact Qumoney’s experts today to discuss tailored strategies to safeguard your business and capitalise on market opportunities.