The US economy continued to demonstrate strength in October, according to the latest flash PMI data.
October’s flash US PMI survey showed a continued rise in business activity, marking a strong start to the fourth quarter. This growth was driven solely by the service sector, as manufacturing output declined for the third month. Employment also saw a slight decrease for the third month in a row, reflecting uncertainties related to the Presidential Election.
However, confidence in the outlook for the upcoming year rebounded after a significant dip in September, with companies predicting more stability and certainty post-election. The survey also reported a slower pace of inflation for input costs and prices charged, with the latter dropping sharply to its lowest level since May 2020, largely due to a significant easing in service sector inflation.
Source: S&P Global
The U.S. dollar strengthened on Wednesday, supported by a sharp rebound in consumer confidence and falling Treasury yields. EUR/USD dipped to 1.1310 despite an extension of the EU tariff deadline to July 9. USD/JPY climbed above 144.5 as bond market jitters and BOJ uncertainty weighed on the yen.
Detail Euro at One-Month High, Fiscal Worries Hit Dollar (05.27.2025)EUR/USD advanced toward $1.14 as U.S. fiscal concerns weighed on the dollar, while the yen touched a one-month high on inflation surprises and risk aversion.
Detail Gold Demand Returns as US Fiscal Outlook Clouds Sentiment (05.26.2025)The euro extended its recovery, nearing 1.1330, helped by muted European headlines and hopes for progress in U.S. trade talks. The Japanese yen broke below 144.00 as hawkish BoJ expectations supported gains.
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