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The euro exchange rate against the dollar rose sharply , returning with all previously lost ground , due to the expectations of Fed's Beige Book publication . Mixed reports from the U.S. showed positive results on the trade balance and the housing market , but the ISM index in the services sector disappointed investors . The data showed that non-manufacturing sector in the United States continued to rise in November , but it was slower than in October. The index of business activity in the non-manufacturing ISM from November declined from 55.4 in October to 53.9 . Economists had expected the index to remain unchanged . Readings above 50 indicate expansion of activity.
"Comments by respondents in most of the show that the non-manufacturing sector continued steady consistent growth outlook for the coming months positive" , - the report says ISM.
Sub- indexes in the survey also showed ISM continued growth in activity, but at a slower pace : the employment index fell to 52.5 from 56.2 , the new orders index fell to 56.4 from 56.8 , output index fell to 55.5 from 59.7 , inventories index fell to 54.0 from 54.5 . Price index fell from 56.1 in October and 57.2 in September to 52.2 .
From ISM index takes into account mainly the data from service companies , which makes up a large part of the U.S. economy , but also includes the construction and public administration.
Pound strengthened against the dollar , approaching the maximum values of the session , which was associated with the release of a weak report on U.S. . In addition , market participants are waiting for tomorrow's meeting of the Bank of England. As expected, the Bank of England will leave monetary policy unchanged, despite signs of a strengthening economy, as fulfills the promise to keep the key rate level , while unemployment exceeds the benchmark .
Recall that at the last meeting of the committee on monetary policy the Bank of England unanimously decided to keep record low interest rates and the asset purchase program at 375 billion pounds. Note that this decision was not a surprise to the market. Earlier, the Bank of England announced plans not to raise interest rates as long as the unemployment rate will not fall until at least 7%.
All committee members agreed that it was not satisfied none of the many foreign terms of price stability , which would have forced to abandon the statements of intent , heard in August. Committee members also noted that there is still uncertainty regarding the recovery and the extent to which the rate of growth of supply will meet demand . There were also concerns about wages and pricing.
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