Amana FS Market News
Germany manufacturing PMI rose to 60.5 in October, better from Reuters’ median consensus of 60.2, but it is down from 60.6 seen in September. On the other hand, the services PMI fell to 55.2, lower than the market consensus of 55.6, down from the previous reading of 55.6. Meanwhile, the EUR/USD traded nearly flat at 1.1751 by 07:30 GMT.
China's Annual GDP Likely to Rise 6.8% in 2017, Slows to 6.4% Next Year: Reuters Poll
According to recent Reuters poll, China’s annual gross domestic product (GDP) is forecast to increase 6.8% this year, better from July’s prediction of 6.6%. However, the growth is anticipated to slow further next year to 6.4%. At the same time, the People's Bank of China (PBoC) is expected to keep its benchmark borrowing rate on hold at least through Q2 2019, but the central bank is forecast to lower reserve requirement ratio (RRR) by 50 basis points in the second-quarter of 2018.
Australia consumer inflation is expected to have risen 0.8% q/q in the third-quarter of this year, up from 0.2% seen in the last quarter. On an annual basis, it is forecast to increase 2% y/y, a tad higher from previous print of 1.9% y/y. Further, core inflation is seen to register 0.3% q/q, printing the annual rate at 1.8% y/y. The trimmed mean is expected at 0.27% and the forecast for the weighted median is 0.32%. Meanwhile, there still remains significant risk that inflation will remain below the RBA’s current forecasts for 2018 and 2019.
- EURUSD higher ahead of German manufacturing PMI for October
- AUD eyes Q3 CPI inflation data
- NZDUSD declines from day’s higher after new PM Ardern comments on fiscal responsibility
EUR/USD: EUR/USD traded gained during early Asian session Tuesday ahead of the crucial German manufacturing PMI for the month of October, scheduled to be released today by 07:30GMT. Further, the dollar remained on the downside as attention turned towards the appointment of a new Federal Reserve Chair after serving head Janet Yellen retires from her services in early February. As of 04:25GMT, the pair traded 0.13% higher at 1.1764, after striking a high of 1.1774.
Things to watch next: Due on October 26 is the European Central Bank’s monetary policy decision, scheduled to be unveiled by 11:45GMT. It is largely expected to be on hold, keeping the benchmark interest rate at -0.40%.
GBP/USD: The pound continued to remain on the upside as the US dollar witnessed losses across the bourses on speculations of a dovish Fed Chair appointment by President Donald Trump. Also, market participants are closely eyeing Britain’s gross domestic product (GDP) for the third quarter of this year, scheduled for release on October 25 by 08:30GMT. As of 04:40GMT, the pair traded 0.17% higher at 1.3220.
Things to watch next: Due on October 25 is the UK’s Q3 GDP report by 08:30GMT. It is expected to come in at 1.4% y/y and 0.3% q/q, tad lower from 1.5 y/y and unchanged from 0.3% q/q in the previous quarter.
AUD/USD: AUD/USD gained on hopes of a rise in Australia’s consumer price-led inflation index for the third quarter of this year, scheduled for release on October 25 by 00:30GMT. It is expected to register 0.8% q/q, compared to 0.2% q/q in the Q2 and 2.0% y/y, from prior 1.9% y/y. As of 04:45GMT, the Aussie traded 0.17% higher vs the USD at 0.7821.
Things to watch next: Due on October 25 is Australia’s consumer price-led inflation index report for the third quarter of this year, by 00:30GMT.
USD/JPY: The pair remained tad lower Tuesday on board weakness in the US dollar amid lack of significant domestic economic data through the day. The yen gained after victory sentiments cooled down a day after Prime Minister Shinzo Abe retained his 'super-majority' in the October 22 snap elections. At 05:10GMT, the pair traded 0.07% lower at 113.37.
Things to watch next: Due on October 26 is Japan’s national core consumer price-led inflation index report for the month of September, due by 23:30GMT. It is expected to come in at 0.8% y/y, compared to 0.7% y/y in August.
NZD/USD: The NZDUSD currency pair slipped from its intra-day high of 0.7003 after the newly formed coalition government Prime Minister Jacinda Ardern said that she is tilted towards fulfilling the fiscal responsibility of the country. At 05:15GMT, the pair traded 0.37% lower at 0.6939.
Japan Nikkei Flash manufacturing PMI fell to 52.5 in October, lower than the Reuters median consensus of 53.1, down from 52.9 in September. However, it remained above the benchmark 50-mark which separates growth from contraction since September last year. Flash manufacturing output also declined to 52.6 for this month, down from 53.2 in September. In addition, the business confidence softened to an 11-month low in October. Meanwhile, USD/JPY traded 0.07% lower at 113.36.