UK Manufacturing PMI Weakens; ISM Manufacturing Next
http://ashraflaidi.com/t/?h3581
October 1, 2012 07:11 ET
:
Euro stabilizes around 1.29 after post-Stress Test slide to 1.2804.
European PMIs revised higher; Chinese manufacturing sector contracts; UK
manufacturing PMI lower. Market turns to ISM manufacturing and
Bernanke's speech. See the latest on Premium Insights below. A new
edition will be posted today.
The greenback is weaker in the
ongoing session but it is off its lows. European equities are gaining
about 1% and the relative strength winner is
EUR while JPY lags.
Rallying
equities along with a slew of manufacturing data helped the common
currency to rise to 1.2910 level. The final readings of September
manufacturing PMIs from France, Germany and Eurozone all showed slight
revisions higher but remain stuck deeply in the contraction zone. EURUSD
trades around 1.2895.
Even AUDUSD is higher despite Chinese
manufacturing PMI that contracted for the second month in a row as it
printed 49.8 in September from August's 49.2.
UK manufacturing
PMI weakened further in September to 48.4 from 49.6 which is the 5th sub
50 level reading. Production, new export orders and employment all
declined while cost pressures rose sharply giving worrying signs about
the months ahead. GBPUSD rose to 1.6164 but it lost a part of its gains
and trades around 1.6145 while EURGBP rose to 0.7990. Other news
showed that Swiss retail sales rose sharply in August by 5.9% from
previous 2.9% but SVME PMI dropped to 43.6 from 46.7. Eurozone
unemployment rate remained steady at 11.4%.
The US session begins
at 8:30 am ET with Canadian RMPI that is expected to rise 1.4% in
August from previous 0.9%. ISM manufacturing that is due at 10:00 am is
seen at 49.8 in September from 49.6 in August. Focus will also be on
the FED chairman Bernanke that delivers a speech on monetary policy at
12:30 pm at the Economic club of Indiana. Q&A session will follow.
Moody's did not change Spanish rating on Friday but the possibility of a
rating cut persists.
GBPUSD is added to 1 EURJPY and gold as
the trades stopped out. 1 AUDUSD and 1 silver hit all targets. Both
EURUSD, 1 silver,1 EURJPY, 1 CADJPY are in progress. Direct access to
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