Good morning, traders.
The Greenback’s bullish trend normally damages gold, but for the moment, the strong US dollar has failed to stop traders from going into yellow metal, possibly due to the result of rising demand for US Treasuries.
According to the latest report, there are now 74,675 cases of the coronavirus in China, Tedros said, including 2,121 deaths in the country. Outside of China, there are 1,076 confirmed cases in 26 countries.
On the news front, the economic calendar is loaded with a series of high impact economic events such as Eurozone’s services and manufacturing PMI data, UK manufacturing and services PMI, and the US manufacturing figures. For Eurozone, most of the figures are expected to perform badly in the wake of ongoing coronavirus issues, and it may pressure the single Euro and drive more selling.
French Flash Manufacturing PMI – The figure is due at 08:15 GMT with a forecast of 51.5 vs. 51.7 during the previous month.
French Flash Services PMI – Besides the French Manufacturing PMI, the services PMI will be observed. It’s expected to dip slightly to 52.1 vs. 52.2.
German Flash Manufacturing PMI – The data will be released at 08:30 GMT, around 15 minutes after France’s figures. Germany is one of the biggest business hubs of the Eurozone, but it’s been struggling with the manufacturing figures. Since Q4 2018, the PMI figures are staying below 50, which show slacks in the German manufacturing sector. Even now, in 2019, the German manufacturing PMI has dropped gradually from 49.9 in January to 41.9 in November.
The economy is expected to show a slight surge in PMI figure from 44.1 to 44.6, which is likely to support the single currency Euro.
German Flash Services PMI – On the other hand, Services PMI is scheduled with a forecast of 52.0, slightly above the previous month’s figure of 51.7.
Flash Manufacturing PMI – At 9:00 GMT, Markit is due to release Flash Manufacturing PMI with a positive forecast of 47.3 vs. 46.9 during the prior month.
Although it’s below 50, it may not place any significant impact on the market as speculators have already priced in the 47.3 figure. By any means, if the number crosses 50, we may see some great price action in the Euro today.
Flash Services PMI – Alongside the flash services, PMI stays over 50 and is expected to be 52.0. It’s slightly above the previous month’s 51.9 reading, but may not place any significant impact on the market.
Good luck today, and see you soon with the next update!