Yesterday’s market movers
- German Retail Sales MoM and YoY plunged from the previous and analysts’ expectation. Later Unemployment Rate and Unemployment Change in the country came out with sluggish figure as well. EU Consumer Price Index (YoY) was out mildly as the previous 2.7%, slightly lower than the prediction. The euro dipped when these figures were out, moving downwards slowly.
- Trichet’s speech outlined the overview from the ECB for the monetary policy. Without doubt the Parliament repeated the phrase ‘strong vigilance’ and suggested a plan B for the policy making. He thinks the euro has kept the value from the better than expected Q1 GDP.
- BoE Credit Conditions Report gave out a flat supply and demand change in Q2 overall, illustrating the weak housing market. Sterling lost 1.60 against US dollar till the New York opening bell.
- Greek Austerity Plan Vote finished with the PM winning the Austerity Plan support. This full-stopped the default concerns in the last few months according the Greek FinMin while the markets are not as positive as they are. However, we saw a bond yield decrease from the country which in some extend is a relief for the euro.
- The worse than expected job data from the US helped Sterling and Euro gained back against US dollar in the afternoon. Apart from the weak economy, we will probably see a weak dollar due to the personnel change rumour in US Treasury.
Today’s market movers
- German and EU PMI Manufacturing are due to come out with a lower reading. We might see a little dip of the euro. However, it’s hard to change the tendency since the big news came out yesterday has been supporting the currency massively.
- On the contrary the UK PMI Manufacturing is expected to come in with a better figure. So long have we been waiting for a positive data from the UK! If it is as good as the expectation we might see some gain for the pound.
- In the U.S., we will have Reuters/Michigan Consumer Sentiment Index, ISM Manufacturing, ISM Prices Paid, and Construction Spending (MoM), all of which are estimated to be worse than the previous performance. Together with the negative job figure yesterday, these will probably increase the economy growth concerns. Investors might move the assets either back into the dollar account and alternatively, the next interest rate mover – EU! (the euro).