Euro and Sterling Fall on Weak PMI Data
| Action Insight Mid-Day Report 6-21-24 |
Euro and Sterling Fall on Weak PMI Data |
Euro fell notably today, along with decline in Eurozone government bond yields, following weaker-than-expected PMI data. Political instability in France is negatively impacting business activity, while Germany's economic recovery has lost momentum. At the same time, surge in Germany's services inflation pressures suggests that ECB is unlikely to implement back-to-back rate cuts in July. The key question now is whether the results of France's snap election, scheduled for June 30 to July 7, will provide positive outcomes for investors and businesses, improving market sentiment. Sterling also weakened after the release of lower-than-expected Services PMI data. Despite the upcoming general election on July 4, UK faces relatively lower political risk, with Labour expected to win by a landslide according to various polls. This has not provided enough support to Sterling, which continues to struggle alongside other European majors. Meanwhile, Swiss Franc is the weakest among the three major European currencies today, extending its pullback following SNB's rate cut, but with relatively weak momentum... |
GBP/USD Mid-Day Outlook Daily Pivots: (S1) 1.2633; (P) 1.2679; (R1) 1.2704; More... Intraday bias in GBP/USD is back on the downside as fall from 1.2859 resumed by breaking through 1.2656 temporary low. Firm break of 1.2633 resistance turned support will argue that whole rise from 1.2298 has completed, and target 1.2445 and below. For now, risk will stay on the downside as long as 1.2739 resistance holds, in case of recovery. | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
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| 23:00 | AUD | Manufacturing PMI Jun P | 47.5 | 49.7 | | 23:00 | AUD | Services PMI Jun P | 51 | 52.5 | | 23:01 | GBP | GfK Consumer Confidence Jun | -14 | -16 | -17 | | 23:30 | JPY | National CPI Y/Y May | 2.80% | 2.50% | | 23:30 | JPY | National CPI ex Fresh Food Y/Y May | 2.50% | 2.60% | 2.20% | | 23:30 | JPY | National CPI ex Food Energy Y/Y May | 2.10% | 2.40% | | 00:30 | JPY | Manufacturing PMI Jun P | 50.1 | 50.6 | 50.4 | | 00:30 | JPY | Services PMI Jun P | 49.8 | 53.8 | | 06:00 | GBP | Retail Sales M/M May | 2.90% | 1.50% | -2.30% | -1.80% | | 06:00 | GBP | Public Sector Net Borrowing (GBP) May | 14.1B | 14.8B | 19.6B | 17.5B | | 07:15 | EUR | France Manufacturing PMI Jun P | 45.3 | 46.8 | 46.4 | | 07:15 | EUR | France Services PMI Jun P | 48.8 | 50 | 49.3 | | 07:30 | EUR | Germany Manufacturing PMI Jun P | 43.4 | 46.4 | 45.4 | | 07:30 | EUR | Germany Services PMI Jun P | 53.5 | 54.4 | 54.2 | | 08:00 | EUR | Eurozone Manufacturing PMI Jun P | 45.6 | 48 | 47.3 | | 08:00 | EUR | Eurozone Services PMI Jun P | 52.6 | 53.5 | 53.2 | | 08:30 | GBP | Manufacturing PMI Jun P | 51.4 | 51 | 51.2 | | 08:30 | GBP | Services PMI Jun P | 51.2 | 53.2 | 52.9 | | 12:30 | CAD | Industrial Product Price M/M May | 0.00% | 0.40% | 1.50% | 1.40% | | 12:30 | CAD | Raw Material Price Index May | -1.00% | -0.60% | 5.50% | 5.30% | | 12:30 | CAD | Retail Sales M/M Apr | 0.70% | 0.70% | -0.20% | -0.30% | | 12:30 | CAD | Retail Sales ex Autos M/M Apr | 1.80% | 0.50% | -0.60% | -0.80% | | 13:45 | USD | Manufacturing PMI Jun P | 51 | 51.3 | | 13:45 | USD | Services PMI Jun P | 53.5 | 54.8 | | 14:00 | USD | Existing Home Sales May | 4.10M | 4.14M | | 14:30 | USD | Natural Gas Storage | 69B | 74B |
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