US dollar falls as German PMIs came in higher than predicted.
US Dollar (USD) falls on Thursday ahead of a busier day of US data releases, with the main event being October’s Purchasing Managers Index (PMI) data. Earlier on Thursday, the European PMIs showed mixed results, with France dropping further in all sectors and Germany recording better-than-expected numbers. Nonetheless, except for the German Services PMI All data for both countries, the Eurozone’s top economy, remain in contraction territory.
The US calendar will also have PMI data, which will provide insight into the status of the economy. Aside from these, the weekly Jobless Claims statistics and the Chicago Fed and Kansas City Fed activity trackers will cause extra volatility.
Daily Market movers: PMI comparisons are taking place.US Dollar index is sliding lower in search of support after reaching a nearly three-month high.
US Dollar (USD) falls on Thursday ahead of a busier day of US data releases, with the main event being October’s Purchasing Managers Index (PMI) data. Earlier on Thursday.
In European trading, both France and Germany’s preliminary Purchase Managers’ Index statistics for October were release: Services in France decreased to 48.3, down from 49.6 in September and falling short of the expected 49.9. Germany’s services sector is the last man standing for the two largest European economies that are expanding. The German Services PMI came out at 51.4, exceeding the 50.6 projection, up from the previous 50.6 in September.
Thursday’s schedule begins at 12:30 GMT with the Chicago Fed National Activity Index and the weekly Jobless Claims figures. Initial claims are projected to increase to 242,000 from 241,000 last week.
At 13:45 GMT, S&P Global will announce the preliminary readings for the October PMIs.
Services PMI predicted to stay relatively constant at 55.0, up from 55.2 in September.
The Services PMI predicted to stay relatively constant at 55.0, up from 55.2 in September.
The Manufacturing PMI should rise, but continue in contraction at 47.5, compared to 47.3 earlier.
The Composite value was 54.0 in September; no forecast is available for October.
At 15:00 GMT, the Kansas Fed Manufacturing Activity Tracker for October will be released. There is no majority position, and the old reading was at -18.
On Thursday, the equities market swings upside down, with China lagging for the first time this week, while European and US shares finally gain ground.
The CME Fedwatch Tool predicts a 25 basis point (bps) rate cut with a 93.0% probability, with a 7.0% possibility of no cut at the forthcoming Fed meeting on November 7.
The US 10-year benchmark rate is trading at 4.19%, down from its high of 4.24% set on Wednesday.
