Market Sentiments: Focus On Manufacturing PMI Data
Last week the markets assessed Election results in Germany and New Zealand. The upcoming snap election in Japan also was parsed for a likely outcome. Given that the Core PCE disappointment didn’t move the markets, the pressure is now on average hourly earnings which will be the second biggest headline out of the September Employment Report. Expanding indications on Hurricane Harvey and initial indications on Irma’s effects will fill a very busy week that starts off with ISM Manufacturing later today, Monday, and winds up with the September Employment Report on Friday.
Several key Central Bank Policy announcements will be made during the week including the Reserve Bank of Australia and the European Central Bank. No change is expected in Australia. Investors are expecting the ECB to advance on its Bond Buying Program. The week will also see the release of Global PMIs that will provide survey information about economic performance of both Manufacturing and Services in September. In Japan, the important Bank of Japan quarterly Tankan will be released, while Canada and the US will release their respective employment reports at week’s end.
Friday Sentiments
EURUSD edged higher Friday, after Data showed that US Consumer Spending barely rose in August and Trump’s consideration of former Federal Reserve Governor Kevin Warsh about a potential nomination to head the US Central Bank. GBPUSD also edged higher, lifted by dollar weakness as well as a shift to a more hawkish tone from the BoE. AUDUSD declined following Yellen’s indication that the Fed would hike Rates in December, and USDCAD declined despite Canada’s economy being unchanged in July, following eight consecutive months of growth.
Potential Catalysts
High Impact
7:55 AM GMT German Manufacturing PMI (Sep)
2:00 PM GMT US ISM Manufacturing PMI (Sep)
3:30 AM GMT (Oct. 3) Australia RBA Interest Rate Decision (Oct)
3:30 AM GMT (Oct. 3) Australia RBA Rate Statement
Medium Impact
8:00 AM GMT EuroZone Manufacturing PMI (Sep)
12:00 AM GMT Australia New Home Sales (MoM) (Aug)
