UK PMI readings worse than expected

6th June 2017 Market Update

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?? GBP – PMI services came in worse than expected at 53.8. Usually, we would expect the pound to weaken off the back of this, however the currency seemed to gain by 0.5% as information came out suggesting that the Tories are likely to win, however maybe not with a majority. Generally speaking, at least over the last decade, the currency markets seem to favour the pound in a Conservative win situation.

?? EUR – European PMI services data also came out yesterday, slightly improved from the consensus 56.3. PMI Composite came out exactly as expected at 56.8. This has done very little to affect the markets. European retail sales data comes out at 9am today, retail sales data usually holds less importance in Europe than it does in the UK.

?? USD – The US dollar remained under pressure yesterday, as the US PMI’s came in lower than expected at 53.6, this along with ISM Non-Manufacturing figures coming in at 56. The Greenback at present still remains hugely under pressure versus the euro with political uncertainty still surrounding Donald Trump and his possible dealings with Russia. We have no data out from the US today.


Key Announcements

?? EUR
9:00am – Retail Sales (YoY and MoM).

?? USD
2:00pm – JOLTS Job Openings (April).


Our View: Not much is expected in the markets today in the absence of any significant data.
Markets are still braced for events later on this week, with the ECB monetary policy meeting, the UK elections, as well as the hearing from former FBI director James Comey.


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Darren Kilner

Darren Kilner

Darren is Head of Dealing at FairFX. Darren lives and breaths FX, his Mastermind topics are G8 currencies and economic forecasts.

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