Fundamental Analysis 01-11-2016
Today sees the release of PMI data from across the globe but most importantly from, the UK and the US. With the price of GBPUSD ranging as of recent, today’s data could be the catalyst for a breakout from the 1.2150 and 1.2250 range. PMI data is regarded an as leading indicator of economic health as purchasing managers adjust their quantities and views as per their expectation of the upcoming demand for the products or services of their companies. A higher PMI figure, show that the purchasing managers are optimistic of the future and will bode well for the respective currency while lower PMI figures are a sign of troubles and usually leads to a depreciation of the executive currency.
Should today’s UK PMI figure be better than expected and/or the US figure be worse than expected, we would see the GBPUSD challenge the top of the range at 1.2250 while a worse than expected UK figure and/or a better than expected US figure will see the GBPUSD test the 1.2150 support level.
Today’s key economic releases are as follows:
Manufacturing PMI expected at 54.6
GDP m/m expected at 0.2%
BOC Gov Poloz Speaks
ISM Manufacturing PMI
GDT Price Index previously at 1.4%
Employment Change q/q expected at 0.6%
Unemployment Rate expected at 5.1%
Inflation Expectation previously at 1.7%
Building Approvals m/m expected at -2.8%