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The dollar rose sharply against the euro, despite the strong performance of European PMI, which surprised investors. Most likely, this strengthening of the American currency was due to the fact that this week will be a meeting of the ECB, which will attract the attention of investors , whose views on the next steps of the Bank diverge. Note that there are serious arguments against what the Central Bank to launch new measures , at least this week , given the internal debate on the recent rate cut . All of this suggests that the ECB would not be surprised markets for the second time in a row.
Regarding the current data , there is also worth highlight strengths American reports that partially helped strengthen the U.S. dollar. As it became known , the index of business activity in the U.S. manufacturing sector rose to a ten-month high , signaling for Strong improvement in business conditions . Final data from Markit showed that the manufacturing purchasing managers index (PMI) rose to 54.7 in November , showed a strong improvement since January. The index was 51.8 in October ( annual minimum). The initial assessment in November stood at 54.3 . The three-month moving average PMI, indicating the main trend was 53.1 and is broadly in line with the corresponding average for 2013 to date. Meanwhile, a report published by the Institute for Supply Management (ISM), showed that in November the activity in the U.S. manufacturing sector has grown, despite the expectations of economists to decline. PMI index for the U.S. manufacturing rose this month to 57.3 vs. 56.4 in October. Note that the latter growth was a surprise to economists , as they forecast a decline to 55.2 . Index increase was primarily due to robust growth components production, new orders and employment. At the same time , a decline compared with the previous month , it was noted by the component stocks and prices .
Pound declined significantly against the dollar , having lost all positions earned in the first hours after the opening of trading today. Note that the first pair is reduced over the last five sessions , but retains a bullish tone. Strong British PMI failed to prevent today's sell the pair before the meeting of the Bank of England and the publication of the autumn forecasts , scheduled for Thursday. Recall that today's report showed that manufacturing activity in the UK expanded at the fastest pace since February 2011 , as the sector gained momentum from production and new orders. PMI from Markit / Chartered Institute of Purchasing & Supply rose to 58.4 in November from a revised 56.5 in October. November result was well above the consensus forecast of 56.5 . In addition, the PMI index indicates an increase in activity for eight consecutive months. Recovery occurred in all sub-sectors covered by the survey , amid rising production and new business. Production prospects remain positive in November, while stocks continued to decline . The continuing rise of the producers led to further job creation in November.
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