On Tuesday, the market major demonstrates quite limited activity. Current quote is 1.0510. Investors keep despising the USD because they are sure that in December the Fed will lift the interest rate by 50 base points instead of 75 base points as planned before. The European statistics published yesterday demonstrated that the Sentix CCI in December recovered, amounting to -21 points from -30.9 previously. This is a very good result, based on the readiness of the ECB to keep tightening its monetary policy.
The final PMI in services in November amounted to 48.5 points, a bit lower than the initial estimation of 48.6 points. In Germany alone, the result was even worse – 46.1 points. Everything below the psychologically important level of 50 points is what separates growth from falling.
The US PMI in non-production by ISM in November grew to 56.5 points from 54.4 points previously. Things are doing well there: businesses got used to the circumstances, and consumers have never planned to cut down on expenses. Sentiment of business people and entrepreneurs in the US and Europe are really different. This might be due to the ECB financial policy lagging seriously from that of the US Fed and to different inflation prospects. Among important statistics today, we will see the US trade balance for October and industrial order volume in Germany for the same month.
