The U.S. Dollar is trading in tight ranges, recuperating a bit against Euro as data underwhelmed in the region.
We shall get our Purchasing Managers’ Index at 9:45AM and the University of Michigan Consumer Sentiment at 10AM, which shall be used to compare the U.S. situation to that of regions like the Ancient continent and the rest of the globe. We shall see if any trade headlines change the dull tide in FX flows at the moment.
It must be observed that on yesterdays update the “4.5% GDP growth figure” used in the Mexican Peso section was meant for the developing-market growth pace and not for the globe as a whole. This is a Moody’s indicator. In 2019, the global Gross Domestic Product Growth rate is expected to slow to 2.6% according to the World Bank, lower than the 3.6% registered last year.
What to Watch Today…
- Markit U.S. Composite PMI 9:45AM
- University of Michigan Consumer Sentiment 10AM
Complete Economic Calendar can be found here.
The shared currency is looking to weaken as PMI readings for the Manufacturing and Services sector disappointed. Euro-area manufacturing failed to get out of contractionary territory although it was not as bad as thought, but services failed to grow as much as expected, barely coming in above the minimum expansion reading.
At this pace, the economic recovery seems to be halting a bit, which drove new European Central Bank President Christine Lagarde to call for a surge in spending during her first speech as ECB chairwoman. Lagarde continued the sentiment left by Mario Draghi, directly explaining that without fiscal help the will by the central bank to do all it can will fall short of impacting growth in the bloc.
Sterling faltered after numbers released that revealed Britain’s weakest output since July of 2016, right after the Brexit vote. Markit Composite PMI showed that the U.K.’s economy is experiencing contraction overall. The reality of weak and possibly recessionary performance only adds real economic tension to an already ugly situation that may not culminate even after the elections of December 12th.
The uncertainty surrounding trade across the Atlantic and on the Pacific has investors and traders eager for developments that can give some guidance although events must occur to truly get a picture of what is to come.