June 03, 2024 08:59 GMT
EUR/GBP Extends Bounce Off Lows Despite Mixed PMIs
FOREX
- PMI data from across Europe came in mixed, with stronger Spanish numbers countering weakness in Italy. The data provided largely inconsequential for currencies, with EUR/GBP extending the modest uptick off late May lows.
- The USD Index is more stable after two sessions of declines into the Friday close, as month-end sales abated and markets found support again at the 100-dma of 104.420.
- JPY is among the firmest performers in G10, helping the spot trade-weighted JPY off fresh post-intervention lows posted overnight.
- Equity futures are generally firmer across both Europe and the US, indicating a firmer cash open later on Monday.
- Focus for the duration of the Monday session turns to ISM manufacturing numbers for May. Markets expect the headline to improve slightly to 49.6 from 49.2 - however the broad downside miss in the MNI Chicago PMI release from Friday could keep markets on the defensive. Central bank speak is thin as banks enter their pre-meeting media blackout periods.
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