Morning Market Update – Greenback in Trouble Again

So Far

United States API Weekly Crude Oil Stock was seen at -8.67M versus the previous value of -1.5M and Brazil’s Interest Rate Decisions met the expected values of 10.25%. Some good results came in for the Kiwi with New Zealand’s Terms of Trade Index coming in at 5.1% and rising above the expectations (3.9%) in the first quarter.

South Korea saw a positive data release with the Consumer Price Index Growth rate meeting the forecasted values (0.1%) in May. The Consumer Price Index Growth rate came in at 2% and went above expectations (1.95%) in May.

The Australian Industry Group’s performance of Mfg Index was seen at 54.8 (May) versus the previous value of 59.2. Australia’s Private Capital Expenditure went down below the forecasted values (0.8%) in 1Q: Actual (0.3%). Australia’s April retail sales went above expectations and gave some relief for the Aussie.

The Japanese Foreign bond investment dropped down to ¥732.1B in May from a previous value of ¥778.5B and Japanese Capital Spending came in at 4.5% and went above the forecasted values (3.9%) in the first quarter. The Japanese Foreign investment increased to ¥129.6B in May
from a previous value of ¥-26.4B and Japan’s Nikkei Manufacturing PMI rose from a previous value of 52 to 53.1 in May.

Coming up

Moving on for the day, we have the Switzerland’s Gross Domestic Product which is forecasted to be better than their previous results and looks to meet the expectations at 0.4%. Late in the day, we have the Sweden Real Retail Sales with a slight decline along with the Purchasing Managers Index Manufacturing at 61.5 versus the previous value of 62.5.

Poland’s Purchasing Manager Index might have a slight edge at 54.5 when compared to the previous data release which stood at 54.1 and Spain’s Markit Manufacturing PMI looks good with a value of 54.7. The Markit Manufacturing PMI of Germany, Canada and France look to hold the same levels along with the Euro and we expect the same results this time.

UK’s Markit Manufacturing PMI might see a decline from a previous value of 573 and this can dampen them for the day. A mixed reaction can be seen for the Greenback with ADP Employment Change forecasted at 185K against 177K. However, the Initial Jobless Claims and Construction Spending look better with 0.5% versus the previous value of -0.2%.

United States ISM Manufacturing PMI shows some negative signs for the greenback with 54.5. In addition, the ISM Prices Paid Index, which is expected to be at 66.4, also adds more pressure to the greenback. This should weaken the greenback in the day.
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