Morning Market Update – Pound Shows Positive Signs

Asian Markets

The recent survey from the Australian Industry Group revealed that the manufacturing sector continued to increase in March with a PMI of 57.5. The monthly Melbourne institute inflation gauge, which shows the changes in the prices of goods and services in Australia, edged higher to 0.1% month-on-month from the previous figure of -0.3%. The annualized reading rose higher to 2.2% from 2.1%.

The recent survey from TD Securities and the Melbourne Institute revealed that the consumer prices showed a slight increase in March. Australia’s February retail sales came at -0.1% versus the expected rate of 0.3% and were last seen at 0.4%. The Australian Bureau of Statistics said that the total number of building approvals jumped to 8.3% in February. As denoted by retail sales, the Australian 10-year bond dropped to record lows of 2.675%.

The recent survey from Nikkei revealed that the manufacturing sector continued to increase in March with a PMI of 52.4. The People’s Bank of China (PBOC) increased the overnight Standing Lending Facility (SLF) loan rates to 3.3%

Other Markets

Sweden’s Manufacturing Purchasing Managers’ Index (PMI) will be released later for the day with forecasts at 60.9. The Unemployment Survey released by the Spanish Government showed a negative 9.4K along with the PMI at 54.7. We have the Manufacturing Purchasing Managers Index (PMI) for Italy, France and Germany to be released today.

In recent days, the pound is showing positive signs and looks to continue with the Manufacturing Purchasing Managers Index (PMI) at 55.1 versus the previous rate of 54.6. The Unemployment Rate and The Producer Price Index (PPI) for the Euro look much better than the previous data. The RBC Manufacturing Purchasing Managers Index (PMI) released by Canada is posted to remain the same without any change.

The Manufacturing Purchasing Managers Index (PMI) for the dollar is forecasted to be at 53.5 than the previous data release. The Construction Spending release is very strong with 1.0% than the previous negative 1%. The Institute for Supply Management looks weak when compared to the previous results. We end the day with the Business Outlook Survey released by the Bank of Canada.
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