After taking some losses against its major currency rivals in overnight trading, the US dollar will have plenty of opportunities to rebound today, as a number of news events are set to shake up the market.
Chief among these indicators is manufacturing data from the UK and US. The following is a summary of the day’s main economic indicators:
09:30 GMT- GBP Manufacturing PMI
The Manufacturing PMI is a survey of 600 British purchasing managers who are asked to rate a number of business conditions in the UK. The survey is considered a key indicator of economic health, with a score above 50 signaling expansion in the manufacturing industry.
This month, analysts are predicting the PMI to come in around 58.0. If true, it would represent a slight drop from last month’s figure of 58.3. That being said, the predicted level would still signal industry growth and will likely lead to healthy gains for the UK pound. If the PMI unexpectedly comes in well below expectations, sterling may have a bearish day.
15:00 GMT- USD ISM Manufacturing PMI
Like the UK Manufacturing PMI, the US PMI is a survey of American purchasing managers who are asked to rate a number of business conditions in the United States. Volatility among USD pairs is often experienced following this report, so traders will want to keep a close watch on the end result.
Predictions are calling for the PMI to come in around 57.8, which would be a sign of expansion in the US manufacturing industry. Still, it would also represent a somewhat significant drop from last month’s figure of 58.5. Should the PMI come in above its forecasted level today, the USD may see some short term bullish movement.
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Dan Eduard is a Market Strategist with ForexYard. His addition to the ForexYard team has brought a unique new perspective to our clients. Dan's ability to compare and contrast trans-national issues with events in the market is uncanny and many clients so far have used his advice to make leaps and bounds in their trading strategies. He has been published on the ForexYard Trading Blog and affiliate websites. He carries a BA in Political Science and an MA in History.
