By Chuck Mikolajczak
NEW YORK (Reuters) -The euro fell to a two-year low while the dollar rose on Friday after data on business activity in each region was released, while Bitcoin hit another record high as it continued its march towards the $100,000 mark.
The HCOB preliminary composite Purchasing Managers’ Index for the eurozone, compiled by S&P Global, fell to a ten-month low of 48.1 in November, below the 50 level that marks an expansion after contraction, and the 50 estimate ,0.
In addition, the UK PMI fell from 51.8 in October to 49.9 in November. The government’s plan to raise taxes on businesses contributed to the first contraction in private sector activity in more than a year, adding to recent indications that the economy was losing steam.
But S&P Global, on the other hand, said the flash US Composite PMI Output Index, which tracks manufacturing and services sectors, rose to 55.3 this month, the highest level since April 2022, after a reading of 54.1 in October, with the service sector accounts for the largest share. of the increase.
“It highlights the two-track world. It’s the US versus the rest, but even within the US it’s the services sector versus the manufacturing sector,” said Brian Jacobsen, chief economist at Annex Wealth Management in Menomonee Falls, Wisconsin.
“How long can American services make up for the burden of everything else?”
The , which measures the dollar against a basket of currencies, rose 0.41% to 107.50, with the euro down 0.54% to $1.0416, after falling to $1.0333, the lowest since November 30, 2022 .The dollar was on course for its third week in a row. advance.
continued its recent rally towards the $100,000 mark, with the cryptocurrency rising more than 40% since the US election, on expectations that newly elected President Donald Trump will ease the regulatory environment for cryptocurrencies. Bitcoin last rose 1.44% to $98,496 after hitting a record high of $99,697.17.
Investors have recently dialed back expectations for the path of the Federal Reserve’s rate cuts, currently rating a 52.7% chance of a 25 basis point cut at the Fed’s December meeting, compared to 69.5% a month ago, according to CME’s FedWatch Tool. , as they assess the impact of the Trump administration’s legislative policies, such as tariffs, on the economy.
Other central banks, such as the European Central Bank and the Bank of England, are expected to become more aggressive in cutting interest rates to support their economies.
Sterling weakened 0.49% to $1.2528 and was on track for its second straight weekly decline.
Some of the European Central Bank’s most influential policymakers urged the European Union to revive long-stalled economic integration to protect its prosperity model from a looming trade war with the United States.
Investors are waiting for Trump’s appointment as Treasury Secretary. The Wall Street Journal reported Thursday that Trump floated the idea of appointing Kevin Warsh, a former member of the Fed’s board of governors, to the post, with the understanding that he could later become Fed chairman.
Against the Japanese yen, the dollar strengthened 0.12% to 154.69. The yen had fallen below 156 per dollar last week for the first time since July, raising the possibility that Japanese authorities would again take steps to support the yen.
Japanese core inflation stood at 2.3% annualized in October, maintaining pressure on the central bank to raise still-low interest rates.
Just over half of economists in a Reuters poll believe the Bank of Japan will hike rates in December, partly due to concerns about the depreciating yen amid an improving economy.
