FX Headlines: Euro Looks to ECB for Support After Strong PMI Revisions
EURO-ZONE ECONOMIC CALENDAR
Euro-Zone PMI revisions were positive across the board today, with the EZ PMI Manufacturing gauge rising to its highest level all year, and the German PMI Manufacturing gauge rising to its highest level in 18-months. However, in the wake of these releases, the Euro remained near its session lows versus the US Dollar.
Nevertheless, both these data feed into the near-term turnaround in growth prospects, which should help feed optimism at the European Central Bank, preventing any new major dovish measures from coming into play. Overall, a hold by the ECB today should prove Euro-positive in light of recent events.
UK ECONOMIC CALENDAR
Like with the Euro-Zone, British data has been on the upswing since late-May and the trend is expected to continue today with the July PMI Manufacturing report. The strong expectation (52.8) feeds into the idea that the Bank of England will keep its QE aspirations quelled at today’s meeting, which should be Sterling-positive.
However, as was made clear by the inclusion of a policy statement and forward guidance at the July 4 meeting, the intention of Governor Carney had been to clarify policy and be more transparent; the desired end result is to let market participants know that UK interest rates will be kept lower for the foreseeable future.
SWISS ECONOMIC CALENDAR
There are no data on the Swiss Franc economic calendar for Thursday, August 1.
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--- Written by Christopher Vecchio, Currency Analyst
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