• Foreign exchange market. European session: the British pound traded lower against the U.S. dollar after the weaker-than-expected construction PMI from the U.K.

Market news

2 September 2015

Foreign exchange market. European session: the British pound traded lower against the U.S. dollar after the weaker-than-expected construction PMI from the U.K.

Economic calendar (GMT0):

(Time/ Region/ Event/ Period/ Previous/ Forecast/ Actual)

01:30 Australia Gross Domestic Product (QoQ) Quarter II 0.9% 0.4% 0.2%

01:30 Australia Gross Domestic Product (YoY) Quarter II 2.5% Revised From 2.3% 2.2% 2.0%

08:30 United Kingdom PMI Construction August 57.1 57.5 57.3

09:00 Eurozone Producer Price Index, MoM July 0.0% Revised From -0.1% -0.1% -0.1%

09:00 Eurozone Producer Price Index (YoY) July -2.1% Revised From -2.2% -2.1% -2.1%

11:00 U.S. MBA Mortgage Applications August 0.2% 11.3%

The U.S. dollar traded mixed to higher against the most major currencies ahead the release of the U.S. economic data. According to the ADP employment report, the U.S. economy is expected to add 201,000 jobs in August.

The U.S. factory orders are expected to increase 0.9% in July, after a 1.8 gain in June.

The euro traded mixed against the U.S. dollar after the weak economic data from the Eurozone. Eurozone's producer price index declined 0.1% in July, in line with expectations, after a flat reading in June. June's figure was revised up from a 0.1% drop.

Intermediate goods prices were flat in July, capital goods prices rose 0.1%, and both durable and non-durable consumer goods prices climbed 0.1%, while energy prices decreased 0.5%.

On a yearly basis, Eurozone's producer price index dropped 2.1% in July, in line with expectations, after a 2.1% fall in June. June's figure was revised up from a 2.2% decline.

Eurozone's producer prices excluding energy fell 0.4% year-on-year in July. Energy prices dropped at an annual rate of 6.5%.

The British pound traded lower against the U.S. dollar after the weaker-than-expected construction PMI from the U.K. Markit's and the Chartered Institute of Purchasing & Supply's construction purchasing managers' index (PMI) for the U.K. increased to 57.3 in August from 57.1 in July, missing expectations for a rise to 57.5.

A reading above 50 indicates expansion in the construction sector.

The increase was driven by a strong rise in business activity and employment.

EUR/USD: the currency pair traded mixed

GBP/USD: the currency pair fell to $1.5263

USD/JPY: the currency pair traded mixed

The most important news that are expected (GMT0):

12:15 U.S. ADP Employment Report August 185 201

14:00 U.S. Factory Orders July 1.8% 0.9%

18:00 U.S. Fed's Beige Book

Market Focus
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