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Overview of the main economical events of the current day - 04/02/2014
Activity in the US Manufacturing Sector Decreased
On Monday 3 February the US dollar dropped vs. most major currencies after the release of weak ISM Manufacturing PMI report in the USA. The euro strengthened its positions amid the manufacturing activity growth in the Eurozone, and the pound sterling considerably decreased after the release of the similar Markit PMI report. The yen increased amid continuing fall of stock markets.
ISM Manufacturing PMI in the USA suddenly appeared to be weak – activity dropped to the lowest level since June 2013. ISM Manufacturing PMI in the USA suddenly dropped in January by 5.2 p. to 51.3 p. from the downwards revised 56.5 p. in December, whereas slight drop to 56 p. was expected. Non-Manufacturing PMI also decreased a month ago to half-year low.
All the subindices except for prices and supplier deliveries decreased. New Orders dropped most of all. Remarkable decrease demonstrated Production, Employment, and Inventories. Manufacturing PMI decrease might be affected by poor weather conditions in January. On Monday treasury secretary Jack Lew appealed to the congress to extend the government’s borrowing limit, warning that the country will be unable to meet its debt obligations at some point very soon, possibly by the end of the month.
The euro strengthened its positions after two-day decrease amid the Eurozone Manufacturing PMI growth which is still at high levels since May 2011. The Final Eurozone Manufacturing PMI increased in January to 54 p. from 52.7 p. in December, and appeared to be slightly better than preliminary estimations at the level of 53.9 p. Manufacturing PMI increased in January in all major countries, except for Italy – in Germany it reached 32-months high.
The pound sterling on the contrary demonstrated considerable fall to 1.5-month low vs. the dollar – after the release of the similar Markit report. Manufacturing PMI in the UK decreased in January to 3-months low of 56.7 p. from 57.2 p. in December – whereas less decrease to 57 p. was expected. Despite the decrease for the second month in a row from the highest readings for almost three years, the Index is still at high rate, which exceeds the average reading of 51.3 p.
The yen increased almost to 2.5-months high vs. the dollar amid the continuing fall of stock markets. The US stock markets dropped on Monday by more than 2%, amid the concerns about Manufacturing Activity decrease in the USA and China. Nikkei Futures again decreased on Monday by more than 3% after the same decrease on Friday. The Swiss franc also strengthened its positions amid thу demand pull for safety assets. SVME PMI in Switzerland increased in January to 56.1 p. having exceeded the expectations at the level of 55.4 p.
The Australian dollar was traded upwards in the first half of the day before the meeting of the Reserve Bank of Australia on Tuesday – but according to the results of the day it had almost no changes amid the weak data in Australia and the fall of Manufacturing PMI in China. Building Permits in Australia dropped by 2.9% m/m, having considerably exceeded the expectations. Building Permits are being decreased for the third month in a row. The official Manufacturing PMI in China, which was released on Saturday, demonstrated the decrease in January to 50.5 p. from 51 p. Non-Manufacturing PMI as dropped as well.
By MasterForex Company
Activity in the US Manufacturing Sector Decreased
On Monday 3 February the US dollar dropped vs. most major currencies after the release of weak ISM Manufacturing PMI report in the USA. The euro strengthened its positions amid the manufacturing activity growth in the Eurozone, and the pound sterling considerably decreased after the release of the similar Markit PMI report. The yen increased amid continuing fall of stock markets.
ISM Manufacturing PMI in the USA suddenly appeared to be weak – activity dropped to the lowest level since June 2013. ISM Manufacturing PMI in the USA suddenly dropped in January by 5.2 p. to 51.3 p. from the downwards revised 56.5 p. in December, whereas slight drop to 56 p. was expected. Non-Manufacturing PMI also decreased a month ago to half-year low.
All the subindices except for prices and supplier deliveries decreased. New Orders dropped most of all. Remarkable decrease demonstrated Production, Employment, and Inventories. Manufacturing PMI decrease might be affected by poor weather conditions in January. On Monday treasury secretary Jack Lew appealed to the congress to extend the government’s borrowing limit, warning that the country will be unable to meet its debt obligations at some point very soon, possibly by the end of the month.
The euro strengthened its positions after two-day decrease amid the Eurozone Manufacturing PMI growth which is still at high levels since May 2011. The Final Eurozone Manufacturing PMI increased in January to 54 p. from 52.7 p. in December, and appeared to be slightly better than preliminary estimations at the level of 53.9 p. Manufacturing PMI increased in January in all major countries, except for Italy – in Germany it reached 32-months high.
The pound sterling on the contrary demonstrated considerable fall to 1.5-month low vs. the dollar – after the release of the similar Markit report. Manufacturing PMI in the UK decreased in January to 3-months low of 56.7 p. from 57.2 p. in December – whereas less decrease to 57 p. was expected. Despite the decrease for the second month in a row from the highest readings for almost three years, the Index is still at high rate, which exceeds the average reading of 51.3 p.
The yen increased almost to 2.5-months high vs. the dollar amid the continuing fall of stock markets. The US stock markets dropped on Monday by more than 2%, amid the concerns about Manufacturing Activity decrease in the USA and China. Nikkei Futures again decreased on Monday by more than 3% after the same decrease on Friday. The Swiss franc also strengthened its positions amid thу demand pull for safety assets. SVME PMI in Switzerland increased in January to 56.1 p. having exceeded the expectations at the level of 55.4 p.
The Australian dollar was traded upwards in the first half of the day before the meeting of the Reserve Bank of Australia on Tuesday – but according to the results of the day it had almost no changes amid the weak data in Australia and the fall of Manufacturing PMI in China. Building Permits in Australia dropped by 2.9% m/m, having considerably exceeded the expectations. Building Permits are being decreased for the third month in a row. The official Manufacturing PMI in China, which was released on Saturday, demonstrated the decrease in January to 50.5 p. from 51 p. Non-Manufacturing PMI as dropped as well.
By MasterForex Company