Analysis and Recommendations: The GBP/USD eased a few pips to trade at 1.5414 after its sharp rise this week in manufacturing and construction PMI data
The GBP/USD eased a few pips to trade at 1.5414 after its sharp rise this week in manufacturing and construction PMI data this week. Today Services PMI missed forecast by a slight bit allowing the pound to relax. A surge in new work across the UK construction industry in October cheered financial markets and sent the pound close to a 10-week high against a basket of currencies.
The British pound jumped higher after the UK purchasing managers’ index for the manufacturing sector rose to 55.5 in October, its highest level in 16 months and ahead of the 51.3 expected and 51.8 reading in September. The survey showed new export orders picked up, while employment remained in expansion for the 30th successive month. The report adds weight to speculation the Bank of England will tighten monetary policy, although most economists believe it is unlikely to do so at this week’s policy review.
“It’s looking increasingly likely that the Bank of England will have to consider a rate hike sooner rather than later,” Boris Schlossberg, managing director of FX strategy at BK Asset Management in New York, said in a note. “Still the central bank is likely to tread lightly and is certainly unlikely to announce anything new at the meeting this Thursday.
FxEmpire provides in-depth analysis for each currency and commodity we review. Fundamental analysis is provided in three components. We provide a detailed monthly analysis and forecast at the beginning of each month. Then we provide more up to the data analysis and information in our weekly reports.
Today’s economic releases:
Cur. |
Event |
Actual |
Forecast |
Previous |
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USD |
API Weekly Crude Oil Stock |
2.800M |
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4.100M |
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NZD |
Employment Change (QoQ) (Q3) |
-0.4% |
0.4% |
0.1% |
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NZD |
Unemployment Rate (Q3) |
6.0% |
6.0% |
5.9% |
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AUD |
Retail Sales (MoM) (Sep) |
0.4% |
0.4% |
0.4% |
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AUD |
Trade Balance (Sep) |
-2.317B |
-3.000B |
-2.711B |
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CNY |
Caixin Services PMI (Oct) |
52.0 |
50.8 |
50.5 |
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EUR |
German Services PMI (Oct) |
54.5 |
55.2 |
55.2 |
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EUR |
ECB President Draghi Speaks |
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EUR |
Markit Composite PMI (Oct) |
53.9 |
54.0 |
54.0 |
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EUR |
Services PMI (Oct) |
54.1 |
54.2 |
54.2 |
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GBP |
Services PMI (Oct) |
54.9 |
54.5 |
53.3 |
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USD |
FOMC Member Brainard Speaks |
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USD |
ADP Nonfarm Employment (Oct) |
|
180K |
200K |
Upcoming Economic Events that you should be monitoring:
Wednesday, November 4, 2015
Cur. |
Event |
Actual |
Forecast |
Previous |
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AUD |
RBA Governor Stevens Speaks |
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JPY |
Monetary Policy Meeting Minutes |
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USD |
FOMC Member Stanley Fischer |
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EUR |
German Factory Orders (MoM) (Sep) |
|
1.0% |
-1.8% |
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EUR |
ECB Economic Bulletin |
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EUR |
Retail Sales (MoM) (Sep) |
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0.2% |
0.0% |
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EUR |
ECB President Draghi Speaks |
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GBP |
Interest Rate Decision (Nov) |
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0.50% |
0.50% |
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GBP |
BoE MPC Meeting Minutes |
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GBP |
BoE Gov Carney Speaks |
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USD |
FOMC Member Dudley Speaks |
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USD |
Initial Jobless Claims |
|
262K |
260K |
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USD |
Unit Labor Costs (QoQ) (Q3) |
|
2.3% |
-1.4% |
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USD |
FOMC Member Stanley Fischer |
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USD |
FOMC Member Lockhart Speaks |
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Government Bond Auctions
Date Time Country
Nov 03 10:10 Austria Holds RAGB bond sale
Nov 04 15:30 Sweden Announces details of Bond on 11 Nov
Nov 04 N/A Holland Announces details of Bond on 10 Nov
Nov 05 09:30 Spain Auctions Bonos
Nov 05 09:50 France Auctions OATs
Nov 05 10:03 Sweden Holds I/L bond auction
Nov 09 12:00 Norway Details bond auction on 11 Nov
Nov 09 15:30 Italy Announces details of BTPs/CCTeu on 12 Nov
Nov 09 N/A US Holds 3-year note auction
Nov 10 10:30 UK 0.125% 2058 I/L Gilt auction
Nov 10 N/A Holland Eur 2.0-3.0bn 0% Apr 2018 DSL
Nov 10 N/A US Holds 10-year note auction
Nov 11 10:03 Sweden Holds bond auction
Nov 11 11:15 Norway Holds bond auction
Nov 11 10:30 Germany Eur 3bn 0.25% Oct 2020 Bobl
Nov 12 10:10 Italy Auctions BTPs/CCTeus
Nov 12 10:30 UK 4.25% 2039 Gilt auction
Nov 12 N/A US Holds 30-year bond auction