EUR gains slightly despite poorer performing contributors

There wasn’t too much data out yesterday to get worked up about, aside from manufacturing which came in at 51.9, a little behind the expected 51.5, which saw the pound dip somewhat considering stronger data out from elsewhere abroad. Over the course of the day, the pound dropped 0.48% against the euro and 0.2% against the dollar. Today we’ll see the release of PMI data which is forecast to improve.

The Eurozone was a mix of both good and bad yesterday in seeing European PMI drop to 52.3 for July, while Ireland’s manufacturing fell to an 18 month low. France’s manufacturing is also suffering. The flipside was that unemployment across the Eurozone fell by 0.2% (despite the overall figure still sitting at an unacceptable 10.9%). EUR saw a mild gain of 0.45% against the dollar, ultimately. We’ll see monthly PPI data out today in Europe which is expected to come in at -0.1%, although without much negative knock-on effect.

In the States, data was looking a bit better than the dollar’s competitors when PMI numbers came in better than expected, although manufacturing ISM came in worse than predicted – now at the worst level since May 2013. Manufacturing, on the whole, has been of concern as it appears to be at its worst point for 2 years. Falling oil prices and a stronger dollar are amongst the reason for this. Today sees the release of ADP employment data which might foretell how non-farm payrolls will perform on Friday. Today we’ll also see factory orders released as well as the Fed’s Beige Book data.

Aside from the above, Canada was seen to drop into recession yesterday with GDP falling by 0.5% from April to June. The drop in oil prices is, in part, to blame, as it’s one of the country’s largest exports.