For the US Dollar we saw the Labor Market Conditions Index (May) released which came out much lower than the previous -0.9 coming out at -4.8 showing quite a large drop. This figure usually runs at a negative correlation against unemployment figures and since the unemployment rate has improved it could be an indicator for the weaker figure.
An article stated that the Dollar has stabilized ahead of Yellen’s speech. Investors seemed to rule out the chance of a rate hike next week due to the poor payroll figures that were released. Yellen said on May 27th that a rate increase may be appropriate in the coming months if the economy and jobs market improve, so this is likely why investors have ruled this out following the poor payroll figures.
Yesterday we saw the Factory orders released (YoY and MoM) for Germany. The year on year figure came out weaker than the previous of 2.4% coming out at -0.5% but in the month on month perspective the figure that came out was much weaker than the previous figure of 2.6% coming out at -2% which was way below the expected figure of -0.6%. This figure is an indication of shipments, inventories and new and unfilled orders within that country so the sharp fall shows a contraction within the German economy which is a powerhouse within the Eurozone.
For Sterling there was no core economic data out, however there was a Brexit poll released from YouGov UK which stated that the leave campaign was leading moving closer to the referendum, with the remain votes standing at 41% the Leave votes standing at 45% and then 11% undecided it seemed to cause a slight drop in the rate of sterling when released. This coupled with 4 other separate polls being released over the weakened including a survey released from the Daily telegraph which stated that 69% are in favour of leaving further damaged the rate of sterling, increasing the uncertainty of the UK leaving the EU . These Brexit worries have dragged the pound to a 3 week low, losing up to 1% against the dollar.
09:00 – EUR – Gross Domestic Product s.a. (YoY) 1.5% previous (MoM) previous 0.5%
12:30 – USD – Nonfarm productivity
19:00 – USD – Consumer Credit Change (Apr)