Daily Market Report 04/11/2013

GBP

Data
from Markit on Friday showed that manufacturing activity in the UK fell
slightly in October to 56, missing expectations of a reading of 56.3. The data
adds to a recent run of economic data out of the UK that have missed analyst
expectations. As a result the pound fell to a week low against the US dollar.

USD

GBP

Data
from Markit on Friday showed that manufacturing activity in the UK fell
slightly in October to 56, missing expectations of a reading of 56.3. The data
adds to a recent run of economic data out of the UK that have missed analyst
expectations. As a result the pound fell to a week low against the US dollar.

USD

The
US dollar drew support from investors following data from the Institute of
Supply Management which showed that manufacturing activity rose to 56.4 in
October, despite the government shutdown in the first two weeks of the month.

Sentiment
on the US dollar may well be changing as the impact of the shutdown on the
economy may well not be as bad as analysts were initially expecting with some
even speculating that tapering of quantitative easing may start sooner than
forecasts of March 2014.

AUD

Data
from Australia overnight showed that retail sales grew at its fastest rate in seven
months, diminishing thoughts of any further interest rate cuts to be made by
the Reserve Bank of Australia and thus supporting the Australian dollar. The
next scheduled meeting is tomorrow.

Today

Manufacturing
output from France, Germany and the Eurozone as a whole may lend some support
for the ailing euro with activity set to have expanded further in October.

UK
construction activity is forecasted to have dropped slightly in October from
September and factory orders for both August and September set to have
increased by 1.8%.

Key Announcements:

8.48am
– EUR – Markit Manufacturing PMI for France (Oct): Expected to have dropped to
49.4.

8.53am
– EUR – Markit Manufacturing PMI for Germany (Oct): Expected to have expanded
to 51.5.

8.58am
– EUR – Markit Manufacturing PMI for the Eurozone (Oct): Expected to have
expanded to 51.3.

9.30am
– GBP – PMI Construction (Oct): Expected to remain 58.9.
 

9.30am
– EUR – Sentix Investor Confidence (Oct): Expected to fall to 6.0. 

15.00pm
– USD – Factory Orders (Sep): Expected to have increased to 1.8%.