Daily Update – 5th November 2019
• EUR Markit Manufacturing PMI • EUR ECB President Lagarde Speech • GBP Markit Construction PMI The EUR/USD pair is trading lower in range, confined to a 50 pips’ range throughout this Monday. The pair seesawed between gains and losses but held near its highest in three months on the back of persistent optimism. Market players are confident the US and China will be able to sign an agreement this month that would be the beginning of the end of the trade war. Also, US Commerce Secretary Wilbur Ross said that he hopes enough progress has been made in trade negotiations with the Union to avoid tariffs on EU imported vehicles. The pound slipped against the dollar Monday, as investors’ attention turned on political developments as election campaigning gets under way. With just over five weeks until the UK heads to the polls on Dec. 12, the Conservative party is leading in the polls and the risk of a “no-deal” Brexit is considered to have been reduced. The British currency slid to as low as $1.2886, down 0.35 percent on the day. In the Brexit front, UK PM Johnson’s spokesperson, said earlier today that the government would not be extending the Brexit transition period beyond January 31st. However, speculative interest remains focused on the December elections, and the consequences the result may have on Brexit and the pound. • USD Markit Services PMI • USD ISM Non-Manufacturing PMI This Tuesday, the EU will release the September Producer Price Index, the US session will bring the ISM Non-Manufacturing PMI. The ISM Non-Manufacturing Index released by the Institute for Supply Management (ISM) shows business conditions in the US non-manufacturing sector. It is worth noting that the non-manufacturing sector does not influence, either positively or negatively, the GDP as much as the ISM Manufacturing does.Yesterday's Focus
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