Manufacturing keeps the bearish trend, heading towards contraction in Europe

Daily Briefing, Mar 1 – Top 5 Things to Watch Today

Posted Friday, March 1, 2019 by
Arslan Butt • 2 min read

Happy Friday, traders.

It’s been a great week as team FX Leaders is closing the week with 80% success rate. Thanks to Fed Chair Powell for keeping the market on the move. On Friday, the US dollar is floating near a 10-week high after the US gross domestic product data topped expectations.

The dollar index jumped to trade at $96.22 on Thursday, pulling back from a three-week trough of $95.824. The market is likely to continue following the same trend on the news as the economic docket is filled with high impact fundamentals today.

Watchlist – Key Economic Events Today

EUR – CPI Flash Estimate y/y
The Eurostat is in highlights for European CPI data. Inflation figures are forecast to rise at 1.5% beating 1.4% previously. Historically, higher inflation figures extend bullish support to the currencies.

GBP – Manufacturing PMI
Just like European manufacturing PMI, this one is also a survey of about 600 purchasing managers which asks respondents to rate the relative level of business conditions including employment, production, new orders, prices, supplier deliveries, and inventories. The threshold is 50 and economists are expecting a figure of 52 from the United States.

The figure will be released by Markit at 9:30 (GMT), so be ready to capture quick moves in Sterling.

CAD – GDP m/m
Gross domestic product is the broadest measure of economic activity and the primary gauge of the economy’s health. Statistics Canada is due to release the gross domestic product at 13:30 (GMT). It will be really interesting to see how the drop in crude oil prices has impacted Canadian productivity.

Economists’ expectation is 0% gain in Canadian GDP, however, it’s still better than -0.1% drop in the rate. It’s likely to support the Loonie at least until the release of news.

USD – ISM Manufacturing PMI
At 15:00, the Institute for Supply Management is expected to release the manufacturing purchasing managers index. The forecast of 55.6 still represents robust growth, but weaker than beforehand 56.6. Apart from the headline, it is important to note the price component. The Fed watches inflationary pressures and will have a reason to keep the interest rate on hold for a longer period.

USD – Revised UoM Consumer Sentiment
The University of Michigan will be releasing the consumer sentiment figures at 15:00 (GMT). The US consumer sentiment is expected is to show a slight rise to 55.6 vs. 56.6. The higher figure is considered good for the currency.

I guess that’s it for now, but stay tuned to our forex trading signals and live market updates. Good luck and have an awesome weekend!

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