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  • Markit Services PMI in US rose sharply in November.
  • US Dollar Index suffers heavy losses below 91.70.

The economic activity in the US’ service sector expanded at its strongest pace in more than five years with the IHS Markit Services PMI jumping to 58.4 from 55.9 in October. This reading came in higher than the flash estimate of 57.7.

Further details of the publication revealed that the Composite PMI in November rose to 58.6 from 56.3.

Commenting on the data, “November saw US business activity surge higher at a rate not seen since early-2015 as companies enjoyed sharply rising demand for goods and services,” said Chris Williamson, Chief Business Economist at IHS Markit. “Confidence has picked up considerably, with encouraging news on vaccines coinciding with reduced political uncertainty following the presidential election, hopes of greater stimulus spending and fresh stock market highs.”

Market reaction

This report failed to help the greenback find demand. As of writing, the US Dollar Index was down 0.5% on a daily basis at 90.65.