07.25.2018 / 09:39

European PMI Manufacturing Sector Beat Expectations

The U.S. dollar softened against most of its major rivals Tuesday afternoon in New York, as commodity prices bounced higher and gave related currencies room to climb. Elsewhere, commodity-linked currencies were stronger. The Canadian dollar was 0.1% stronger, with the greenback fetching $1.3161 down from $1.3173 late Monday, while the Australian dollar  strengthened 0.5% to buy $0.7416, according to FactSet. The ICE U.S. Dollar Index slipped 0.1% to 94.616. Its main rival, the euro lost its previous advantage throughout the day as traders digested a mixed bag of purchasing managers index readings, including a five-month high in Germany’s composite PMI reading. The euro last bought $1.1681. So far, the data was broadly consistent with the European Central Bank’s forecast of economic activity, meaning it would unlikely reverse its careful course, market participants said. The central bank is tapering its quantitative easing program into year-end, but has said it wouldn’t raise interest rates until at least summer next year. The ECB is due to meet on Thursday for its latest policy update.

In July, European the manufacturing purchasing managers index beat expectations, printing 55.1, IHS Markit reported Tuesday. That compares with the 54.7 expectation from a FactSet consensus survey. The services PMI of 54.4, however, fell short of the 55.0 estimate. French and German manufacturing PMIs for July also exceeded expectations. On the services side, German activity was in line with estimates, but the French services PMI fell slightly short. Elsewhere, confidence in French manufacturing dropped in July, with business leaders less optimistic about activity in the sector for the coming months than they had been earlier this year, French statistics agency Insee said Tuesday. The sentiment reading in the manufacturing sector declined to 108 in July from 109 in June, which Insee was cut from a previous reading of 110. Meanwhile Gold for August delivery on Comex shed 10 cents, or less than 0.1%, to settle at $1,225.50 an ounce, after also putting in a loss in the prior session. Prices had settled at $1,224 on Thursday, the lowest for a most-active contract in about a year. September silver meanwhile, added 9 cents, or 0.6%, to $15.52 an ounce.