Daily Market News 6 July 2011

Yesterday’s market movers

  • German and EU PMI services came out with negatively, both of which dropped from the previous. Later we had EU retail sales YoY May which indicates a downtrend sales instead of an uptrend from the expectation.The euro kept the downwards trend, losing against US dollar from the dollar strength earlier in Asian Market.
  • Good news from the UK is in the form of better-than-expected PMI services data. In comparison with the pervious world PMI data and the other UK PMI data, the UK services industry shows a better performance in June than the others. We saw GBP/USD hike 100 pips, pulling out from the 1.60 level.
  • US Factory Orders had 0.8% increase in May, lower than the expectation but better than the previous 0.9% decrease in April. In terms of a fundamental reading, this did not affect the dollar movement as much. However, dollar weakened on the interest rate increase pending deterred by the US economic report late in the afternoon.

Today’s market movers

  • We will have EU GDP YoY and QoQ for Quarter 1 to be released this morning, looking at a flat reading. Meanwhile, German Factory Orders are expected to increase YoY and decrease MoM. These might not support Euro go back to the previous strong position. There is no data in significance from UK today.
  • US ISM Non-Manufacturing are due to come out this afternoon with a slightly drop according to the consensus. As the main focus is on tomorrow’s ADP and Friday’s Nonfarm Payroll, we might have a quiet dollar today.