Sterling and Euro Rebound on PMIs, But No Turn Around Yet
| Action Insight Daily Report 4-23-24 |
Sterling and Euro Rebound on PMIs, But No Turn Around Yet |
Sterling and Euro rebound broadly today, bolstered by encouraging PMI data that suggests continued recovery momentum in both UK and Eurozone. For the Pound, the latest PMI readings indicate that UK's recovery from last year's recession is gathering pace. Meanwhile, rising cost pressures, particularly in the services sector, are heightening concerns about the sustainability of disinflation progress. These concerns are echoed by some BoE officials, who appear hesitant to consider interest rate cuts in the near future due to the persistent inflationary pressures. Similarly, the Euro found support from the Eurozone PMI data, which highlighted strengthening recovery led by the services sector and an improved economic outlook for Germany and France. While a rate cut in June is still considered "failt accompli", ECB may proceed more cautiously with policy easing thereafter. Meanwhile, Australian Dollar is ranking as the third strongest performer, with its rise similarly supported by encouraging PMI data. On the other end of the spectrum, New Zealand Dollar is the day's weakest at this point, with Canadian Dollar and Dollar also underperforming. Japanese Yen and Swiss Franc are holding middle positions... |
GBP/USD Mid-Day Outlook Daily Pivots: (S1) 1.2303; (P) 1.2347; (R1) 1.2395; More... Intraday bias in GBP/USD is turned neutral first with current recovery, and some consolidations would be seen first. Upside of recovery should be limited by 1.2538 support turned resistance. On the downside, below 1.2298 will resume the fall from 1.2892 to 1.2036 support next. | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
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| 23:00 | AUD | Manufacturing PMI Apr P | 49.9 | 47.3 | | 23:00 | AUD | Services PMI Apr P | 54.2 | 54.4 | | 00:30 | JPY | Manufacturing PMI Apr P | 49.9 | 48 | 48.2 | | 00:30 | JPY | Services PMI Apr P | 54.6 | 54.1 | | 06:00 | GBP | Public Sector Net Borrowing (GBP) Mar | 11.0B | 8.9B | 7.5B | 8.6B | | 07:15 | EUR | France Manufacturing PMI Apr P | 44.9 | 46.9 | 46.2 | | 07:15 | EUR | France Services PMI Apr P | 50.5 | 49 | 48.3 | | 07:30 | EUR | Germany Manufacturing PMI Apr P | 42.2 | 42.9 | 41.9 | | 07:30 | EUR | Germany Services PMI Apr P | 53.3 | 50.5 | 50.1 | | 08:00 | EUR | Eurozone Manufacturing PMI Apr P | 45.6 | 46.5 | 46.1 | | 08:00 | EUR | Eurozone Services PMI Apr P | 52.9 | 51.8 | 51.5 | | 08:30 | GBP | Manufacturing PMI Apr P | 48.7 | 50.2 | 50.3 | | 08:30 | GBP | Services PMI Apr P | 54.9 | 53 | 53.1 | | 13:45 | USD | Manufacturing PMI Apr P | 52 | 51.9 | | 13:45 | USD | Services PMI Apr P | 52 | 51.7 | | 14:00 | USD | New Home Sales Mar | 668K | 662K |
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