Attention shifts to Eurozone and US PMI
Currencies Direct September 23rd 2016 - 2 minute read
Following a bit of an anti-climax after no policy changes from the FED on Wednesday followed by a positive, yet lower than expected US unemployment claims, we only saw a narrow trading range of about 100 points on the GBPUSD pairing yesterday. We surprisingly saw an even narrower trading range on GBPEUR yesterday considering we had the President of the ECB, Mario Draghi speaking at 2PM. Further to this, he gave a speech at the first annual conference of the ESRB (European Systemic Risk Board) where he discussed overbanking in Europe and macro-prudential policy. We didn’t see too much market movement during this speech as it was mainly focussing on the broader picture of the over European banking system.
Investor focus shifts towards macroeconomic data
After all the key central bank meetings have been dealt with, the investor focus is likely to shift towards macroeconomic data and guess-work about whether the Federal Reserve will hike in December.
Attention focuses on Eurozone and US PMI
With not much news to drive the market today, the attention will be focussed on Eurozone and US PMI. So far, both have shown resilience in the face of the UK's vote to leave the EU although analysts will be watching for hints of pre-election nerves within the US economy. Furthermore, going back to the macro-economic calendar, we’re expecting a day of PMI (Purchasing Managers' Index) figures released from France at 8AM this morning, Germany at 8:30 and European Flash PMI for manufacturing and services at 9AM which tends to have the most impact on markets. Figures have been better than expected so far so we could be in for a day of euro movement.
Following this, we have another round of Flash PMI data for the US at 2:45 PM after the 1:30PM release of Canadian CPI (Consumer Price Index) and retail Sales figures.