Morning Market Update – Pound might Resume

Japanese BSI Large Manufacturing (QoQ) went down below the forecasted values (1.5) in the second quarter: Actual (-2.9). The National Australia Bank’s Business Confidence dropped down from a previous value of 13 to 7 this month. The People’s Bank of China (PBOC) set the Yuan reference at 6.7954 versus yesterday’s fix of 6.7948.

Moving on for the day, we have Germany’s Wholesale Price Index which seems to take a slight dip from a previous value of 0.3% to 0.2%. However, the ZEW Survey showed better results which might work in favor for Germany.

With today’s data release, the pound sterling looked for some gains after the losses in the recent UK elections. The forecasts seem to have a mixed reaction for the day as there might be a fall with the PPI Core Output, Producer Price Index and Consumer Price Index.

Euro seems to be in a better position with the ZEW Survey forecasted at 37.2 versus the previous release at 35.1. The release of the Producer Price Index ex Food & Energy took a slight dip but may see some recovery with the Redbook index. The only major news for the greenback comes tomorrow with the Fed’s Interest Rate Decision along with the Fed’s Monetary Policy Statement.
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