Daily Market Report – 02/06/2014

EUR:
In Europe on Friday there was a report out revealing what analysts think about
the ECB Monetary Policy Meeting on Thursday. It shows that most analysts expect
interest rate cuts, but only a handful believe the ECB will embark on a
quantitative easing programme. 

USD:
On Thursday we learned that the US economy shrank for the first time in three

EUR:
In Europe on Friday there was a report out revealing what analysts think about
the ECB Monetary Policy Meeting on Thursday. It shows that most analysts expect
interest rate cuts, but only a handful believe the ECB will embark on a
quantitative easing programme. 

USD:
On Thursday we learned that the US economy shrank for the first time in three
years between January and March. It was expected that there would be a rebound
in the following quarter.

However, the latest consumer spending data has dampened hopes that growth will
surge back in this quarter. Consumer spending fell 0.1% in April – the first
monthly decline in a year – surprising economists who anticipated a 0.2% rise.

Today:
The main focus of economic data today is Manufacturing PMI for both the
Eurozone and the UK. Manufacturing PMI’s are expected to show a decline for
both the UK and the Eurozone.

There is also more mortgage approval data from the UK today. This is meant to
fall from the previous month, showing that the banks are continuing to get
tougher on who they are lending to.

Key Announcements:
09:00 – EUR – Markit Manufacturing PMI, expected to be lower at 52.5

09:30 – GBP – Markit Manufacturing PMI, expected be lower at 57

09:30 – GBP – Mortgage Approvals expected to come in lower at 64.75k

13:00 – EUR – German Inflation (CPI) YoY expected to fall to 1.1% from 1.3%

15:00 – USD – Markit Manufacturing PMI expected to come in higher at 55.4

Our dealers are available
via e-mail ([email protected]) or by phone (020 3051 1226).