Last week was very interesting for the markets, as we saw the releases of the US Inflation and Disney’s earnings report. So let's see what we should await this week!
Will the GBP be pressed by the PMI results?
The British Flash Manufacturing PMI will be announced on Thursday at 11:30 MT time.
Instruments to trade: EUR/GBP, GBP/USD, GBP/CAD, GBP/CHF
The Manufacturing PMI as a regular indicator was initiated in 1992 in the UK. Since then, it has never been as low as it was revealed in April. Even against an understandably low expectation of 42.0, the actual figure was 32.6 showing that sometimes the worst-case scenarios get beaten by even harsher reality. Currently, the UK economy is being restarted, but there are a lot of setbacks in this process and a lot of people are confused and disoriented with what to do and what to expect. The second quarter of 2020 is said to be worse than the first one, so that may be priced in the May release of the indicator as well. Resuming, the May Manufacturing PMI may be as low as the April one. However, if it is better than this expectation, the GBP will definitely celebrate it.
- If the Manufacturing PMI comes out stronger than thought, the GBP will rise.
- If the Manufacturing PMI results are weak, the GBP will fall.
The volatility that the markets experienced last week promises the second tidal wave! What should your favorite assets anticipate during the first week of February?
The US will reveal Non-farm payrolls on January 7, Friday, at 15:30 GMT+2 (MetaTrader time).
The Australian Bureau of Statistics will announce the updated Unemployment Rate and Employment Change data on Thursday, May 19, at 04:30 MT.
The UK Office for National Statistics will publish Consumer Price Index (CPI) data on Wednesday, May 18, at 09:00 MT.
The US Census Bureau will announce Core Retail Sales and Retail Sales on Tuesday, May 17 at 15:30 MT.