Euro weakens on weaker-than-expected manufacturing PMI
The single currency opened higher and rose to an intra-day high of 1.3555 at New Zealand open after voters in Germany gave Angela Merkel a third term as Chancellor in elections held on Sunday. Price retreated in Asian morning and traded sideways before falling to 1.3508 in European morning after the release of weaker-than-expected Germany and EU manufacturing PMI data. Euro remained under pressure in New York morning and dropped to a session low at 1.3480 before stabilising.
Germany manufacturing PMI (flash) in September came in 51.3, worse than the forecast of 52.2. EU manufacturing PMI (flash) in September came in 51.1, worse than the forecast of 51.8.
Versus the Japanese yen, the greenback remained under pressure in Asia and retreated to 98.86 in European morning on continued expectations that the Fed will not taper its bond purchases anytime soon. Price dropped to an intra-day low at 98.65 after Federal Reserve Bank of New York President William C. Dudley said policy makers must “forcefully” push against economic headwinds.
The British pound traded with a firm undertone in Australia and strengthened to 1.6032 in Asian morning before rising to an intra-day high at 1.6073 due to cross-buying of sterling vs euro (eru/gbp fell from 0.8475 to 0.8404). However, price pared intra-day gains and retreated to 1.6017 in New York morning before stabilising.
In other news, ECB's Draghi said 'expects recovery to continue in current quarter despite weak industrial production in July; underlying price pressures in Euro zone expected to remain subdued; inflation risks are broadly balanced; ECB monetary policy stance will remain accommodative for as long as necessary.'
On the data front, U.S. Markit PMI preliminary (Sep) came in at 52.8, vs the forecast of 54.0. U.S. Chicago Fed index (Aug) came in at 0.14, vs the forecast of -0.05, previous reading is revised to -0.43.
Data to be released on Tuesday :
U.K. BBA mortgage approvals, Germany IFO business climate and current assessment, Canada retail sales, U.S. retail sales, house price index, S&P house price index and consumer confidence.
Actionable trading levels delivered LIVE to YOUR charts
Mon 27 May 2019 AAGB/US- Holiday Tue 28 May 2019 A 14:00 US- Consumer Confidence C 13:00 US- Case-Shiller Wed 29 May 2019 A 08:55 DE- Employment AA 18:00 US- BOC Decision A 18:30 US- EIA Crude Thu 30 Mar 2019 AAEZ/CH- Holiday A 12:30 US- Weekly Jobless Fri 31 Mar 2019 AA 10:00 EZ- Flash HICP A 12:30 US- Personal Income, Spending, Deflator AA 14:00 US- Final Univ of Michigan
Global-View Affiliate Program
We are starting an affiliate program to market some of our products.
Send me an email if you would be interested or if you know someone who would like to be an affiliate. Generous commissions payout for those accepted.
Put the word "affiliate" in the email subject line.
looking for your first broker or do you need of a new one? There are
more critical things to consider than you might have thought.
We were trading long before there were online brokers. Global-View
has been directly involved with the industry since its infancy. We've
seen everything and are up-to-data with recent regulatory changes.