• The ISM Manufacturing PMI report showed ongoing contraction in business activity in November.
• The US Dollar Index stays in positive territory above 106.50.

The business activity in the US manufacturing sector continued to contract, albeit at a softer pace in November, with the ISM Manufacturing PMI rising to 48.4 from 46.5 in October. This reading came in better than the market expectation of 47.5.

The Employment Index of the PMI survey edged higher to 48.1 from 44.4 in the same period and the Prices Paid Index retreated to 50.3 from 54.8. Finally, the New Orders Index improved to 50.4 from 47.1.

Market reaction

The US Dollar Index preserves its bullish momentum following the PMI report and was last seen rising 0.83% on the day above 106.50.