The US dollar rose to a new high on Friday, while the euro sank on poor euro-area economic data. The dollar rose 3% this month on expectations that a presidential election victory would boost inflation and limit the Federal Reserve’s ability to cut interest rates. In Europe, EUR/USD fell to a two-year low on Thursday after upbeat employment data and Ukraine’s poor economic outlook. Production fell further this month.
The preliminary composite eurozone purchasing managers’ index fell to a 10-month low of 48.1 in November, below the 50-point threshold that would distinguish growth from contraction. Germany’s economy grew more slowly than expected in the third quarter, and GBP/USD fell 0.4% to 1.2536. So far in November, the yuan has fallen as much as 1.8% against the dollar as signs of insufficient Chinese activity weigh on local markets.
