Major Currencies Rise - Business Activities Are Getting Better!

 The US dollar showed strengthening following a report of U.S. business activity recording its highest 20-month reading in October.

According to a report released by IHS Markit, U.S. business activity increased in October but growth in the business and ordering sectors declined slightly as the Covid-19 pandemic spread and the election date drew near.

The U.S. PMI production index rose to a reading level of 55.5 this month. This reading is the highest reading since February 2019 and increased from the reading level recorded in September at 54.3. Readings above 50 indicate that there is growth in private sector output.

Despite increased business activity, economists forecast slower economic growth in the fourth quarter compared to the third quarter which was largely driven by pandemic packages worth more than $ 3 trillion.

The US dollar index recorded a strengthening of 0.01% against major currencies to the level of 92.963. While the euro began to show a strengthening of 0.09% against the US dollar.

The euro strengthened higher after being supported by manufacturing data which unexpectedly showed stronger growth since April 2018 in October.

Meanwhile, the UK is reported to have signed a post-Brexit trade agreement with Japan. But Brexit talks with the EU have yet to find a solution.

The pound depreciated 0.32% against the US dollar to 1.3039.