PMIs weaken as rate hikes bite
The benchmark purchasing manager indexes (PMIs) released over the last 24 hours painted an almost uniformly negative picture of the global economy with manufacturing slipping further into the doldrums.
The vast majority of manufacturing sectors fell further below the benchmark boom-bust level of 50, with Japan, France and the UK all falling further in July.
The most disappointing result came from Germany at a new cycle low of 38.8, with only the US above expectations, although still in contraction at 49.0.
In the services space, the results also universally disappointed, although German, UK and US numbers stayed above 50.0.
FX cautious ahead of Fed, ECB, BoJ
FX markets were mostly unmoved by the PMI data with the focus instead on this week’s triumvirate of major central bank decisions.
The Federal Reserve meets on Thursday morning, the European Central bank on Thursday night and the Bank of Japan on Friday.
The AUD/USD and NZD/USD were both flat.
In Asia, the USD/CNY was also flat, while the USD/SGD gained 0.1%.
Global confidence in focus
Global confidence numbers are in focus today with the German Ifo business confidence and US consumer confidence due tonight.
In line with the weakness seen in yesterday’s PMI numbers, global confidence surveys have seen their results tumble over the last 12 months as rate hikes bite.
FX quiet ahead of Fed
Table: seven-day rolling currency trends and trading ranges
Key global risk events
Calendar: 24 – 29 July
All times AEST
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