Dollar and yen extends recent fall today on the back of solid Manufacturing data from UK, Eurozone and China. While some hesitation is seen in early US session, stocks regathers momentum after ISM Manufacturing index came in above expectation. Dollar and yen are back under pressure. The headline index rose more than expected from 44.8 to 48.9. Improvements are seen across the components with new orders and productions jumping to 55.3 and 57.9 respectively. Employment also rose to 45.6 even though it’s still staying below 50 level. Also released construction spending unexpectedly rose 0.3% mom in June.
UK Manufacturing PMI rose more than expected to 50.8 in July, the first expansionary reading in more than a year. Eurozone Manufacturing PMI was also revised up from 46 to 46.3. Swiss PMI came in better than expected at 44.3. China CLSA PMI rose to highest level in a year at 52.8 in June. Markets sentiments were also lifted by positive news from the Banking sector. Barclays said it’s investment banking earnings jumped to GBP 1.05b while HSBC said pretax profit at its securities unit more than double to $6.2b.
Brought to you by Alan’s Forex Blog: