What will happen? The US Q2 Gross Domestic Product will be announced at 15:30 MT time (GMT+3) on Thursday, July 29…
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.
Today the Fed will make a policy statement at 21:00 GMT+3. This event will affect all the currency pairs with the USD and thus almost the all Forex market!
The overall market sentiment is risk-on. The S&P 500 index (US 500) is getting close to the all-time high. Oil is recovering quickly from its recent losses.
What events to follow and how to trade during the week of July 2-6?
EUR/USD retraced to 1.1870 after breaking out this level. It should be just a natural sell-off ahead of the further rally up.
The Fed held a much-awaited meeting yesterday. The bank hasn’t made any policy changes. As a result, the USD weakened and EUR/USD rocketed. Jump in to know all the latest news!