1st June 2018 Market Update
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?? GBP – Net lending to individuals came in slightly above expectations at 5.7 billion, however this had no impact on Sterling. There was very little movement with Sterling yesterday, however it marginally lost ground against the euro as some political certainty appeared to return to Italy.
Manufacturing PMI is released from the UK this morning, and is expected to come in at 53.5, slightly below last month’s reading. However this may not have much of an impact on Sterling unless the reading is far from the market expectations.
?? EUR – CPI and core CPI came out above expectations, slightly strengthening the euro. Furthermore, it appears that Italy is close to now forming a government and having it approved by the president. This could rectify the political instability which has been rife in recent days.
Manufacturing PMI is being released across Europe today and the final reading is expected to come in at 55.5. Due to the large amount of countries involved, it is normally quite unlikely the final reading will meet expectations.
?? USD – Yesterday the weekly unemployment claims came in above expectations, however due to the regular nature of this data it had minimal market impact. Later in the afternoon, crude oil inventories came in at -3.6M however this had little effect on the dollar.
Today is jobs day in the US so there can be significant market movement. The non-farm employment change is expected to rise to 189K, and average earnings is expected to creep up 0.2%. The unemployment rate is expected to stay at 3.9%, a very strong level. Shortly after ISM manufacturing PMI is expected to rise to 58.2.
09:30am: UK Manufacturing PMI.
1:30pm: Nonfarm Payroll Figures.
1:30pm: Average Earnings.
Summary: Yesterday, eurozone CPI and core CPI came in above expectations, slightly strengthening the euro. Later on in the evening it appeared that the Italians would be forming a government. This removed some of the political instability in Europe.
Today the main focus will be on the US with it being jobs day, and manufacturing figures also being released. Manufacturing data is also being released from Europe and the UK.
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