Yesterday’s market movers
- German Retail Sales YoY jumped up to 3.6% from -3.6%, much better than the prediction. However, MoM rose but failed to beat the market expectation. Germany’s Unemployment Rate s.a. came out as expected 7%, slightly lower than last month 7.1%, while the more important figure Unemployment Change in Germany decreased in May to -8K from -33K.
- EU had Unemployment Rate result for April, which stabilised at 9.9% as previous. Meanwhile, EU CPI declined from 2.8% to 2.7%, showing inflation is under control.
- Euro lost momentum from last week in the morning and moved away from 1.4420 level against USD since the figures are not positive enough to boost the currency.
- In the US, some negative data as well: Chicago Purchasing Mangers’ Index May dropped and Consumer Confidence May came out (at 60.8) weaker than the market consensus and expectation 66.0.
- We have had sluggish data from the US labor market, housing market, manufacturing figures, durable goods orders, GDP (annualized) in the last two weeks. These indicated the uncertainty of the US economy recovery and played an important part of the dollar weakness. Yesterday GBP/USD and EUR/USD have been touched the high 1.6546 and 1.4424 respectively.
Today’s market movers
- We are expecting PMI Manufacturing in May from Germany, EU and UK today. None of them are predicted to be positive. We have seen industrial productions and orders slow down previously in the relative countries. If the figures are down, we might have some lost of the Euro and Sterling.
- UK Mortgage Approvals in April is due to come out with a small drop according to the market analysts. Since we haven’t got any UK data in the past few days, we could see some movement the market.
- Comparably, the US seems to be in a bigger trouble since the ADP Employment Change (May), ISM Prices Paid (May) and Construction Spending (April) are all expected to decrease from the previous month. We probably will see a further dollar weakness if the US fundamentals continue the negative situation.