Key market players expect China to start decreasing the rate and giving liquidity to the markets. China is actively pushing to switch to the stimulative monetary policy. What's going on right now? Read it in our new review.
The important release for China may shake the markets
China will release the level of its manufacturing PMI on May 31, at 4:00 MT time. This is a leading indicator of economic health. As China is one of the biggest economies in the world, its data tends to affect the global markets. As a result, higher figures of the indicator affect positively not only the Chinese yuan but also the risk sentiment in the market. Riskier environment increases the demand on the risk-weighted currencies, such as the AUD, the NZD, and the emerging market currencies. On the flipside, the lower actual level of manufacturing PMI for China pulls the Chinese currency down and hurts the risk sentiment in the market. The risk-off sentiment makes the risky assets go down as well.
• If the actual level of manufacturing PMI is higher than the forecasts, the risk sentiment will be on;
• If the actual level of manufacturing PMI is lower than the forecasts, the risk sentiment will be off.
Hello, and welcome to the last week of August. We found the best news and collected the most impactful events for you to stay on the top of the market. Let’s go!
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Today's main event for the markets is the FOMC Interest Rate Decision, where the US regulator is widely expected to keep the interest rate at the same level of 5.5%.