The U.K. manufacturing PMI reading for June rose to 47.0 from 45.4 which surpassed expectations of 46.4. The reading was the highest since May 2008, but remained below the 50 boom/bust level for the fifteenth consecutive month. Meanwhile, the index of services improved to -1.2% from a revised -1.6% the month prior as the sector continues to struggle.
[B]Fundamental Headlines[/B]
• [I]Nomura to Buy NikkoCiti Trust[/I] – Wall Street Journal
• [I]Citi Raises Card Rates on Millions[/I] – Financial Times
• [I]China Manufacturing Indices Record Gains[/I]– Financial Times
• [I]Fed Funds Closed at 7%, Highest Level Since October, on Quarter-End Demand[/I] – Bloomberg
• [I]U.S. Companies Cut June Payrolls by 473,000, More Than Estimated, ADP Says[/I] – Bloomberg
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EURUSD[/B] – German retail sales in May unexpectedly rose by 0.4% versus expectations of 0.0%, improving for a third straight month. Additionally, the country saw its final PMI manufacturing reading for June raised to 40.9 from 40.5, which helped lift the Euro-zone figure to 42.6 from 42.4. Increases in activity and consumer consumption in the region’s largest economy is a strong sign that the broader economy is stabilizing. However, retail sales were down -2.9% from a year ago and output is still contracting albeit at a slower pace. Therefore, there still remains the possibility that we could see another ECB rate cut, but the rhetoric from the central bank has been consistent that current rates are appropriate. Discuss the topic and your trade ideas in the EUR/USD Forum.
[B]
GBPUSD[/B] – The U.K. manufacturing PMI reading for June rose to 47.0 from 45.4 which surpassed expectations of 46.4. The reading was the highest since May 2008, but remained below the 50 boom/bust level for the fifteenth consecutive month. Companies are starting to adjust to the challenging environment and generating a small increase in demand. Meanwhile, the index of services improved to -1.2% from a revised -1.6% the month prior as the sector continues to struggle. The sector which accounts for 70% of GDP contracted for the tenth straight month as the economy continues to try and regain its footing. Discuss the topic and your trade ideas in the GBP/USD Forum.
