Analysis and Recommendations: The GBP/USD eased by 13 points to trade at 1.62 after manufacturing PMI missed expectations. The U.K. also received downbeat
The GBP/USD eased by 13 points to trade at 1.62 after manufacturing PMI missed expectations. The U.K. also received downbeat data from Markit, as Britain’s manufacturing sector in September expanded at the slowest pace in 17 months. The pound dropped below $1.62 in the wake of the report. The greenback has surged in recent weeks as the growing strength of the U.S. economy prompts investors to bet the Federal Reserve will soon have to consider raising interest rates. With markets awaiting private sector jobs data later Wednesday, some analysts say the dollar is vulnerable to a pullback.
The pound dropped off sharply and traded near a three-week low against the dollar on Wednesday as the Markit/CIPS manufacturing PMI fell to a 17-month low in September – weakening the call for sooner rate hikes by the Bank of England.
The UK manufacturing PMI came at 51.6 for September, down from 52.2 in August while analysts were anticipating an unchanged reading. Markit said the easing of output and new orders growth was the main drag on the index while price pressures remained subdued.
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 actual vs. forecast:
Cur. |
Event |
Actual |
Forecast |
Previous |
|||
|
AUD |
AIG Manufacturing Index |
46.5 |
|
47.3 |
|
|
|
JPY |
Tankan Large Mfg |
13 |
10 |
12 |
|
|
|
JPY |
Tankan Non-Mfg |
13 |
17 |
19 |
|
|
|
CNY |
Manufacturing PMI (Sep) |
51.1 |
51.0 |
51.1 |
|
|
|
AUD |
Retail Sales (MoM) (Aug) |
0.1% |
0.4% |
0.4% |
|
|
|
IDR |
Core Inflation (YoY) (Sep) |
4.04% |
4.33% |
4.47% |
|
|
|
EUR |
Spanish Mfg. PMI (Sep) |
52.6 |
52.2 |
52.8 |
|
|
|
CHF |
SVME PMI (Sep) |
50.4 |
52.0 |
52.9 |
|
|
|
EUR |
Italian Mfg. PMI (Sep) |
50.7 |
49.5 |
49.8 |
|
|
|
EUR |
French Mfg. PMI |
48.8 |
48.8 |
48.8 |
|
|
|
EUR |
German Mfg. PMI (Sep) |
49.9 |
50.3 |
50.3 |
|
|
|
EUR |
Manufacturing PMI (Sep) |
50.3 |
50.5 |
50.5 |
|
|
|
GBP |
Manufacturing PMI (Sep) |
51.6 |
52.5 |
52.2 |
||
|
USD |
ADP Nonfarm |
|
210K |
204K |
|
|
|
USD |
ISM Manufacturing |
|
57.5 |
58.1 |
|
|
|
USD |
ISM Manufacturing PMI |
|
58.5 |
59.0 |
Upcoming Economic Events that you should be monitoring:
|
Cur. |
Event |
Actual |
Forecast |
Previous |
||
|
AUD |
HIA New Home Sales |
|
|
-5.7% |
|
|
|
AUD |
Building Approvals |
|
1.0% |
2.5% |
|
|
|
AUD |
Trade Balance |
|
-0.700B |
1.359B |
|
|
|
GBP |
Construction PMI |
|
63.5 |
64.0 |
|
|
|
EUR |
Interest Rate Decision |
|
0.05% |
0.05% |
|
|
|
USD |
Initial Jobless Claims |
|
297K |
293K |
|
|
|
USD |
Factory Orders (MoM) |
|
-9.3% |
10.5% |
Government Bond Auction
Date Time Country Auction
Oct 02 08:30 Spain Auctions 1.4% Jan 2020 & 2.75% Oct 2024 Obligations
Oct 02 08:50 France Eur 7-8bn 1.75% May 2023, 1.75% Nov 2024 & 2.75% Oct 2027
Oct 02 15:00 US Announces details of 3/10Y Note & 30Y bond auctions on Oct
Oct 07 06:00 Swiss Announces details of optional bond auction on Oct 08
Oct 07 09:00 Norway Bond auction
Oct 07 09:15 Austria RAGB auction
Oct 07 9:30 UK Auctions 3.5% 2045 Gilt
Oct 07 15:30 Italy Announces details of BOT auction on Oct 10
Oct 07 17:00 US 3Y Note auction
Oct 08 09:30 Germany Eur 4.0bn Oct 2019 Bobl auction
Oct 08 09:30 Swiss Bond auction (for decision)
Oct 08 15:30 Italy Announces details of BTP
Oct 08 17:00 US 10Y Note auction
Oct 09 09:03 Sweden I/L bond auction
Oct 09 17:00 US 30Y bond auction
Oct 10 09:10 Italy BOT auction