US Dollar Unphased by Weak US PMI Figures

US PMI’s, Initial Jobless Claims, US Dollar Talking Points:

• US services and manufacturing PMI’s fall sharply for April
• Business confidence flips pessimistic for first time in the indexes history
• Initial jobless claims crossed the wires at 4427k claims earlier Thursday

US manufacturing and services PMI’s fell to 36.9 and 27.0 respectively for April according to Markit Economics. The preliminary figures for April provides the most timely information for the state of the economy amid the current coronavirus pandemic. The US Dollar was largely unchanged as the Markit data crossed the wires, revealing the worst drop on record for services business activity and manufacturing output.

US Dollar Chart (1-Min)

Source: IG Charts

The greenback has been treading higher this week as investors continue to seek out the safety of the US currency amid economic turmoil spurred by COVID-19. Many fear that the global economy may already be in a recession as coronavirus halts economic activity around the globe. The data from Markit this morning showed that business confidence in the US turned negative for the first time in the indexes history.

IHS PMI’S Chart

Initial jobless claims for the United States released earlier this morning showing a concerning figure for the state of the labor market. Initial claims for the week ending April 18 crossed the wires at 4427k claims. While Thursday morning’s figure is lower than the previous week, claims remain much higher than they did during the 2008 financial crisis.