The pound gained against the dollar during the overnight trade, as global manufacturing output picked up in January. UK PMI manufacturing gauge rose to 52.1 from a revised 49.7 in December, jumping to an eight month high in January and returned to growth after a quarter of contraction as production rebounded. In addition, manufacturing data from China to Germany and the US also reported surprisingly positive figures, adding to the signs that global manufacturing is picking up the pace. Looking ahead to today, PMI construction headline the UK’s economic calendar, with the expectations for the figures to have dropped to 52.5 in January from 53.2 the month before.
The euro consolidated during the overnight trade as Greek officials struggle to reach an agreement with bondholders on cutting the nation’s debt burden. The single currency came under pressure on growing uncertainty about the Greek deal, as its conclusion is being delayed for weeks and the market is pressuring the euro. With light economic calendar scheduled for today, expect for the common currency to remain driven by market risk aversion.
The dollar consolidated during the Asian session as positive manufacturing data around the globe pushed investors out of the safety of the US currency. Although manufacturing data is refreshing and encouraging to start the year, it does not mean that the global economy is out of the woods yet. Looking ahead to today, nonfarm productivity figures and initial jobless claims for last week of January headline the economic calendar. Expect for the dollar to remain in current ranges as all eyes remain fixed at tomorrow’s employment data for January.
Comments