“The report showed that business confidence improved while cost inflation eased to the slowest for almost a year.”, — write: www.fxempire.com
S&P Global commented: “The strong service sector PMI reading for December sets the U.S. economy up for a good start to 2025 but, with growth as strong as this, it’s understandable that policymakers are taking a more cautious approach to lowering interest rates.”
Composite PMI increased from 54.9 in November to 55.4 in December, compared to analyst forecast of 56.6. The weaker-than-expected Services PMI report led to a lower-than-expected reading of the Composite PMI report. Nevertheless, the report showed that U.S. economy remained in great shape.
U.S. Dollar Index settled near the 108.20 level as traders reacted to PMI reports. It remains to be seen whether reports will have a major impact on forex markets today as traders are focused on Trump’s comments regarding his tariff policy.
Gold pulled back towards the $2630 level despite weak dollar. Rising Treasury yields put pressure on gold markets.
SP500 tested new highs as traders focused on PMI data. Currently, SP500 is trying to settle above the 6015 level. From a big picture point of view, SP500 continues to rebound after the recent pullback.