The dollar gained ground against the euro and the British pound on Friday, boosted by strong US economic activity data, while Bitcoin continued its impressive advance towards $100,000, reaching a new all-time high.

Fall of the Euro and the Pound Sterling

Eurozone : The HCOB Composite Purchasing Managers' Index (PMI) fell to 48.1 in November, a 10-month low, signalling economic contraction. This reflects a slowdown in business activity, with the data falling below the 50 level.

United Kingdom : PMI fell to 49.9, the first decline in more than a year, hit by a rise in corporate taxes that weighed on private sector activity.

Impact on the euro and the pound : The euro fell 0.54% to $1.0416, touching a two-year low of $1.0333. The British pound lost 0.49% to $1.2528, recording its second consecutive week of losses.

United States leads with solid economic data

In contrast, the US presented an optimistic outlook with a composite PMI that rose to 55.3, the highest level since April 2022. This increase was mainly driven by the services sector, highlighting the country's economic resilience.

The dollar index, which measures the greenback's strength against a basket of currencies, rose 0.41% to 107.50, marking its third straight week of gains. Against the Japanese yen, the dollar strengthened 0.12% to 154.69.

Bitcoin: close to $100,000

Bitcoin continued its impressive rally, rising 1.44% to trade at $98,496 after hitting a record high of $99,697. Since the US election, the cryptocurrency has surged more than 40%, boosted by expectations that Donald Trump’s administration will ease the regulatory environment for cryptocurrencies.

Monetary policy expectations

Federal Reserve : Investors are reassessing the odds of a December rate cut, which now stand at 52.7%, up from 69.5% last month, according to the CME FedWatch Tool.

Europe and UK : The European Central Bank and the Bank of England are preparing to implement more aggressive rate cuts to stimulate their economies.

Japan: Inflation and Central Bank Policies

In Japan, core annual inflation was 2.3 percent in October, which could prompt the Bank of Japan to raise interest rates in December, according to a Reuters poll. The weakness of the yen, which fell below 156 per dollar last week, is adding pressure for policymakers to intervene.

Conclusion

The global economic outlook reflects a stark contrast between the strength of the US and the difficulties of Europe and Japan. Meanwhile, Bitcoin continues to consolidate itself as an attractive asset in an uncertain environment, quickly approaching the symbolic $100,000 mark.