Daily Market News 6 June 2011

Friday's Market Movers

  • Germany and EU Purchasing Manager Index Services started the market last Friday with positive figures for May in comparison with the market consensus, but still not as good as April’s. It turned out not to affect the Euro, which traded quietly around 1.4470 level in the morning.
  • UK PMI Services failed to exceed expectation, dipped to 53.8 in May from 54.3. Sterling mildly dropped off 1.6350 but found support just above the week low 1.6280 given the tendency of US dollar weakness.
  • The US Unemployment Rate and Nonfarm Payrolls numbers both came out disappointingly. Average Hourly Earnings MoM increased 0.2% in May but YoY decreased 0.2%. The negative data in the Employment market made the dollar lose ground against major currencies across the board, which continued on Sunday and this morning’s market. Sterling and Euro were trading above 1.64 and 1.46 respectively.

Today's Market Movers

  • EU Sentix Investor Confidence and Producer Price Index are coming out in the morning with a negative outlook according to the analysts. If so, we could have the Euro strength against Sterling under control.
  • In the U.S., Treasury's Geithner Speech is due in the evening. We honestly hope the government will give out some practical solutions for the economic growth concern since the U.S. is the biggest economy in the world after all, we would not want it to bring down the global economy.