The market mood is positive after the Chinese Caixin Manufacturing Purchasing Managers’ Index beat expectations with 51.8 points. The official PMI also exceeded projections and rose above 50 points, indicating expansion.
USD/JPY is rising as the anti-risk JPY is again losing ground, possibly tracking the uptick in the US equity index futures. EUR/USD is not impressed by the upbeat China factory data and is flashing red ahead of the European Central Bank (ECB) President Christine Lagarde’s testimony to the European parliament. GBP/USD was down 0.14% to 1.2915. The pound has taken several hits recently as polls continue to suggest that Boris Johnson’s Conservatives are poised to win in elections on December 12, paving the way for a rapid Brexit.
Markets gear up for a busy start to a new week, with the final readings of the Euro area and the UK Manufacturing PMI to dominate the EUR calendar. The final German and Eurozone PMI numbers may not have a big impact, unless they carry a significant upward/downward revisions to the preliminary figures released on Nov. 22. Looking forward, ECB President Lagarde’s testimony scheduled at 14:00 GMT before the European parliament will gather attention.
In the NA session, the US Manufacturing PMI data from both Markit and ISM will headline due at 15:00 GMT. Apart from the data, the US-China trade-related developments and risk trends will continue to play a pivotal role in Monday’s trading.
Oil prices rose more than 1% on Monday as signs of rising manufacturing activity in China pointed to increasing fuel demand, and hints that OPEC may deepen output cuts at its meeting this week indicated supply may tighten next year.
Gold prices traded lower on Monday morning amid a tightened dollar and positive manufacturing Purchasing Managers’ Index (PMI) data from China.
US dollar stayed little changed – Eyes on ECB President Lagarde’s testimony
Published on 2019-12-02 09:26
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