MARKET UPDATES :
- Forex – Dollar slips lower as mixed U.S. data continues to weigh
- Forex – Sterling falls after subdued U.K. factory data, ODEC warning
- Forex – Dollar drops against yen, investors pare June rate hike expectations
EUR/USD continues to have an uneventful week, as the pair trades at 1.1160 on Wednesday. On the release front, German Manufacturing PMI came in at 52.5 points, beating expectations. Eurozone Manufacturing PMI posted a reading of 51.5 points, matching the forecast. The US will also release a key manufacturing indicator, ISM Manufacturing PMI. The markets are expecting a weak reading of 50.5 in the April report. On Thursday, the ECB sets interest rates, while the US releases two key events – ADP Nonfarm Payrolls and Unemployment Claims.There were no surprises from the Eurozone manufacturing sector, which continues to show weak growth. German and Eurozone Manufacturing PMIs came in slightly above the 50 level, which separates contraction from expansion. German numbers have been mixed this week. German numbers have started the week with mixed results.
The pound fell to the day’s lows on Wednesday after data showing that U.K. manufacturing edged back into expansion territory in May but growth remained subdued and as OECD cut its U.K. growth forecast and warned on Brexit.GBP/USD touched lows of 1.4450, down from around 1.4467 ahead of the data.Market said the U.K. manufacturing purchasing managers’ index ticked up to 50.1 last month from 49.4 in April.Economists had forecast a reading of 49.6.The index was only fractionally above the 50.0 level separating growth from contraction. The domestic market remained positive for manufacturers, especially for producers of consumer goods, but softer global continued to weigh on new export orders, the report said.
STOCK RECOMMENDATION :
- BUY GBP/USD ABOVE 1.4446 TGT 1.4466 1.4496 SL 1.4416
- SELL GBP/USD BELOW 1.4416 TGT 1.4396 1.4376 SL 1.4446