The euro rose against the dollar as market participants expect the outcome of today's meeting of the Federal Open Market Committee Federal Reserve. Likely to change monetary policy at this meeting virtually eliminated. Likely to be announced plans for the conservation of bond purchases at the current level.
Note also that the impact on the dynamics of trade data, which showed that manufacturing activity in the U.S. in April slowed, thereby exceeded the estimates of economists. According to the report, the purchasing managers' index for the manufacturing sector in April fell to 50.7 against 51.3 in March. Recall that the index values above 50 indicate an increase in activity in the sector. We also note that, according to the average forecast value of this indicator was reduced to the level of 51.0. All indexes in the ISM report showed mixed trends, but overall showed an increase in activity. The new orders index rose in April to 52.3 against 51.4 in March, having fallen sharply compared to 57.8 in February. Export index fell to 54.0 from 56.0. The production index rebounded in April to 53.5 from 52.2. The employment index slowed to 50.2 from 54.2. The index of inventories remained in negative territory for the second month in a row and fell to 46.5 from 49.5. ISM report shows a weakening of price pressure on manufacturers in April. Prices paid index fell to 50.0 from 54.5 in March, jumped to 61.5 in February.
The Australian dollar fell against most of its 16 most-traded currencies, after the Chinese government report showed that the outcome of last month's manufacturing activity expanded, but at a slower rate, and an increase in new orders and production declined, increasing the likelihood that recovery in the second largest economy in the world, still remains unstable. According to the report, the purchasing managers' index, which measures activity in the manufacturing sector fell last month to a level of 50.6, up from 50.9 in March. We add that, according to the average forecast of economists, the value of this index was down to 50.8. Recall that the index value above 50 indicates expansion of the sector. It should be noted that PMI is in growth area for seven months. In addition, it was reported that the growth of new orders was moderate, against which the relevant index fell to 51.7 from 52.3 in March. Note also that the production index fell to 52.6 from 52.7 in the previous month.
The pound rose to a 11-week high against the dollar, as it became known, that the situation in the UK manufacturing sector improved in April, buoyed by an increase in export orders and levels of production. The data showed that the index of purchasing managers in the manufacturing sector in the UK April rose to 49.8 from a revised figure for March at 48.6. Recall that the index value below 50 indicates contraction activity. Note that economists had expected growth of the April index to 48.6, compared with the March index at 48.3, which was reported initially. Economists said that the main incentive steel export orders, which rose for the first time in over a year and the fastest pace since July 2011.
Components |
April |
March |
Change |
New Orders |
52.3 |
51.4 |
+0.9 |
Production |
53.5 |
52.2 |
+1.3 |
Employment |
50.2 |
54.2 |
-4.0 |
Supplier Deliveries |
50.9 |
49.4 |
+1.5 |
Inventories |
46.5 |
49.5 |
-3.0 |
Customers' Inventories |
44.5 |
47.5 |
-3.0 |
Prices |
50.0 |
54.5 |
-4.5 |
Backlog of Orders |
53.0 |
51.0 |
+2.0 |
Exports |
54.0 |
56.0 |
-2.0 |
Imports |
55.0 |
54.0 |
+1.0 |
EUR/USD
$1.3100, $1.3150
USD/JPY Y97.00, Y98.00, Y98.20, Y98.50, Y99.00
EUR/GBP stg0.8425, stg0.8475
AUD/USD $1.0300, $1.0325, $1.0350, $1.0410
Next minor resistance seen at $1.3250, more strong - $1.3280.
EUR/USD
Offers $1.3340/50, $1.3315/20, $1.3290/300, $1.3250/60, $1.3225/30
Bids $1.3130/20, $1.3105/00, $1.30085/80, $1.3055/50, $1.3030/10
GBP/USD
Offers $1.5690/700, $1.5670/75, $1.5650, $1.5630, $1.5600/10
Bids $1.5500, $1.5475/65, $1.5450, $1.5430/20
AUD/USD
Offers $1.0500, $1.0475/80, $1.0450, $1.0420, $1.0395/00
Bids $1.0310/00, $1.0265/60, $1.0250
USD/JPY
Offers Y98.45/50, Y98.30, Y98.10/15, Y97.95/00, Y97.80
Bids Y97.25/20, Y96.80, Y96.60/50
EUR/JPY
Offers Y130.00, Y129.80, Y129.50, Y129.00
Bids Y128.30/25, Y128.00, Y127.80, Y127.60/50
EUR/GBP
Offers stg0.8580/85, stg0.8530/35, stg0.8500/10, stg0.8485
Bids stg0.8460-40, stg0.8425/20
EUR/USD
$1.3100, $1.3150
USD/JPY Y97.00, Y98.00, Y98.20, Y98.50, Y99.00
EUR/GBP stg0.8425, stg0.8475
AUD/USD $1.0300, $1.0325, $1.0350, $1.0410
00:00 France Bank
holiday
00:00 Germany Bank holiday
00:00 Switzerland Bank holiday
01:00 Australia HIA New Home Sales, m/m March -5.3% +4.2%
01:00 China Manufacturing PMI April 50.9 50.8 50.6
01:30 Japan Labor Cash Earnings, YoY March -0.7% -1.0% -0.6%
03:25 Australia RBA Assist Gov Edey Speaks
The dollar fell versus the yen for a fifth day, the longest losing streak since September, on speculation the Federal Reserve won't slacken its bond-buying program to cap borrowing costs as the economy loses momentum. The Fed, which concludes a two-day meeting today, is buying $85 billion of bonds a month in the third round of its quantitative-easing strategy to put downward pressure on borrowing costs.
The greenback was 0.2 percent from a almost two-week low against the euro before a report today forecast to show U.S. private employers added the fewest jobs in six months. Private employment rose by 150,000 in April after gaining 158,000 the previous month, data from the Roseland, New Jersey- based ADP Research Institute will probably show, according to the median estimate of economists surveyed by Bloomberg News. U.S. payrolls increased by 148,000 workers after an 88,000 gain in March, a separate survey forecasts before a May 3 Labor Department report.
Australia's dollar fell for a second day versus Japan's currency as Chinese data showed manufacturing growth slowed in the South Pacific nation's largest trading partner. China's manufacturing purchasing managers index slipped to 50.6 in April from 50.9 the month before, according to a report from the National Bureau of Statistics and China Federation of Logistics and Purchasing. A reading above 50 indicates expansion.
EUR/USD: during the Asian session the pair traded in the range of $ 1.3155-80
GBP/USD: during the Asian session the pair traded in the range of $ 1.5525-45
USD/JPY: during the Asian session the pair fell to Y97.05.
The UK calendar gets underway at 0600GMT, with the release of the April Nationwide House Price Index. Analysts are looking for a modest uptick in prices, as the Spring boost and recent surveys both suggest increased strength in the market. At 0828GMT, the April CIPS/Markit Manufacturing PMI data will be released. At 1000GMT, BOE MPC member Ben Broadbent is set to give a speech In London. US employment data/components remain a key driver with this afternoon's ADP and PMI and ISM releases in focus ahead of tonight's FOMC and Friday's NFP. Thursday's ECB rate decision, with many forecasting a cut of
25bps, remains in the background.
(pare/closed(00:00 GMT +02:00)/change,
%)
EUR/USD $1,3167 +0,57%
GBP/USD $1,5535 +0,28%
USD/CHF Chf0,9294 -0,83%
USD/JPY Y97,37 -0,47%
EUR/JPY Y128,21 +0,09%
GBP/JPY Y151,27 -0,19%
AUD/USD $1,0365 +0,20%
NZD/USD $0,8565 +0,12%
USD/CAD C$1,0071 -0,46%
00:00 France Bank holiday
00:00 Germany Bank holiday
00:00 Switzerland Bank holiday
01:00 Australia HIA New Home Sales, m/m March -5.3%
01:00 China Manufacturing PMI April 50.9 50.8
01:30 Japan Labor Cash Earnings, YoY March -0.7% -1.0%
03:25 Australia RBA Assist Gov Edey Speaks
06:00 United Kingdom Nationwide house price index April 0.0% +0.4%
06:00 United Kingdom Nationwide house price index, y/y April +0.8% +1.3%
06:30 Australia RBA Commodity prices, y/y April -7.5%
08:30 United Kingdom Purchasing Manager Index Manufacturing March 48.3 48.6
12:15 U.S. ADP Employment Report April 158 153
13:00 U.S. Manufacturing PMI (Finally) April 52.0 52.1
14:00 U.S. Construction Spending, m/m March +1.2% +0.7%
14:00 U.S. ISM Manufacturing April 51.3 51.1
14:30 U.S. Crude Oil Inventories April +0.9
18:00 United Kingdom MPC Member Dr Ben Broadbent Speaks
18:00 U.S. Fed Interest Rate Decision 0.25% 0.25%
18:00 U.S. FOMC Statement
20:00 United Kingdom BOE Deputy Governor Andrew Bailey Speaks
22:05 Canada BOC Gov Carney Speaks
23:50 Japan BoJ Monetary Policy Meeting April
23:50 Japan Monetary Base, y/y April +19.8%