Free Trial

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.
158 words

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
  • 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.