Daily Economic Outlook, June 3 – Manufacturing PMIs in Highlights
Arslan Butt • 2 min read
On Monday, the market continues to trade the risk-off sentiment triggered by the US-Sino trade war and Theresa May’s resignation, which is due this week. Today, the market is all about manufacturing PMI from Eurozone, the United Kingdom, and the United States. Brace yourself for some price action.
Key Economic Events Today
The European economy is due to release a series of economic events which include:
French Final Manufacturing PMI – The figure is due at 7:50 (GMT) with a forecast of 49.1 vs. 48.5 during the previous month.
Spanish Manufacturing PMI – Besides the French Manufacturing PMI, the Spanish Manufacturing PMI will be observed and it’s likely to stay over 50 threshold.
Italian Manufacturing PMI – The Italian economy is already suffering from massive debt crises. The PMI figures are expected to be 48.5, down from 49.1. Well, it’s also below 50, which may keep Euro under massive selling pressure today.
German Final Manufacturing PMI – The data will be released right after French and Italian manufacturing PMI at 7:55 GMT. It’s forecast to stay at 44.3 vs. 44.3. However, the figure is far away from the 50 thresholds, giving another reason to stay bearish on the Euro.
GBP – Manufacturing PMI
Manufacturing PMI is due to be released at 8:30 GMT. It’s a leading indicator of economic health as businesses react quickly to market conditions, and their purchasing managers hold perhaps the most current and relevant insight into the companies’ view of the economy.
The manufacturing PMI is expected to drop from 53.1 to 52.5, which may not be driving important moves. However, in case of a drop of up to 50 or lower, there will be a massive selling in the GBP.
USD – ISM Manufacturing PMI
The Institute of Supply Management (ISM) will release its latest manufacturing business survey outlook, also known as the ISM Manufacturing PMI at 14:00 GMT. Economists are expecting a slight surge in the figure from 52.8 to 53.0, which may keep the dollar supported today.
Good luck fellas, and stay tuned to FX Leaders for exciting trade ideas.