• Home
  • Analytics
  • Market News
  • Foreign exchange market. European session: the British pound traded lower against the U.S. dollar after the release of the weaker-than-expected manufacturing PMI data from the U.K.

Market news

3 May 2016

Foreign exchange market. European session: the British pound traded lower against the U.S. dollar after the release of the weaker-than-expected manufacturing PMI data from the U.K.

Economic calendar (GMT0):

(Time/ Region/ Event/ Period/ Previous/ Forecast/ Actual)

00:00 Japan Bank holiday

01:30 Australia Building Permits, m/m March 2.9% Revised From 3.1% -3% 3.7%

01:45 China Markit/Caixin Manufacturing PMI April 49.7 49.4

04:30 Australia Announcement of the RBA decision on the discount rate 2% 2% 1.75%

04:30 Australia RBA Rate Statement

08:30 United Kingdom Purchasing Manager Index Manufacturing April 50.7 Revised From 51 51.2 49.2

09:00 Eurozone Producer Price Index, MoM March -0.7% -0.1% 0.3%

09:00 Eurozone Producer Price Index (YoY) March -4.2% -4.3% -4.2%

09:30 Australia Annual Budget Release

The U.S. dollar traded mixed against the most major currencies. No major economic reports in the U.S. will be released today.

The euro traded mixed against the U.S. dollar after the release of the mixed producer price inflation data from the Eurozone. Eurostat released its producer price index for the Eurozone on Tuesday. Eurozone's producer price index rose 0.3% in March, beating expectations for a 0.1% fall, after a 0.7% decrease in February.

On a yearly basis, Eurozone's producer price index dropped 4.2% in March, beating expectations for a 4.3% decline, after a 4.2% fall in February.

Eurozone's producer prices excluding energy fell 1.1% year-on-year in March, after a 0.8% decline in February. Energy prices dropped at an annual rate of 12.1% in March.

The European Commission released its Spring 2016 Economic Forecast report on Tuesday. The European Commission lowered its growth forecasts for this and next years. The Eurozone's economy is expected to expand 1.6% in 2016, down from its previous estimate of 1.7%, and 1.8% in 2017, down from its previous forecast of 1.9%.

Inflation was downgraded to 0.2% from 0.5% for this year, and to 1.4% from 1.5% for next year.

The British pound traded lower against the U.S. dollar after the release of the weaker-than-expected manufacturing PMI data from the U.K. Markit Economics released its manufacturing purchasing managers' index (PMI) for the U.K. on Tuesday. The Markit/Chartered Institute of Procurement & Supply manufacturing PMI for the U.K. dropped to 49.2 in April from 50.7 in March, missing expectations for a rise to 51.2. It was the lowest level since February 2013. March's figure was revised down from 51.0.

A reading above 50 indicates expansion, below indicates contraction.

The drop was driven by declines in output, new orders, employment and stocks of purchases.

"Manufacturing production is now falling at a quarterly pace of around 1%, and will likely act as a drag on the economy again during the second quarter and putting greater pressure on the service sector to sustain GDP growth," Markit's Senior Economist Rob Dobson said.

The Canadian dollar traded lower against the U.S. dollar ahead of a speech by the Bank of Canada Governor Stephen Poloz later in the day.

The Swiss franc traded higher against the U.S. dollar. The State Secretariat for Economic Affairs (SECO) released its consumer confidence index data for Switzerland on Tuesday. The index fell to -15 in April from -14 in January.

"Consumer sentiment has remained below the long-term average for several quarters. The latest survey in April 2016 shows hardly any major changes; only expectations over price trends have risen slightly," the State Secretariat for Economic Affairs said in a statement.

EUR/USD: the currency pair traded mixed

GBP/USD: the currency pair fell to $1.4612

USD/JPY: the currency pair rose to Y105.92

The most important news that are expected (GMT0):

14:30 U.S. FOMC Member Mester Speaks

16:30 Canada BOC Gov Stephen Poloz Speaks

22:45 New Zealand Employment Change, q/q Quarter I 0.9% 0.7%

22:45 New Zealand Unemployment Rate Quarter I 5.3% 5.5%

Market Focus
  • Canadian union leader says three NAFTA nations are still far away from resolving the most complex issues
  • Swiss Producer and Import Price Index fell 0.2% in March
  • OPEC Sec-Gen says oil inventories in February below 50 mln barrels above 5-year-average, decline trend to continue in coming months
  • Earnings Season in U.S.: Major Reports of the Week

All posted material is a marketing communication solely for informational purposes and reliance on this may lead to loss. Past performance is not a reliable indicator of future results. Please read our full disclaimer.

+30 International awards
Have a question?

We are ready to assist you in every step of your trading experience
by providing 24/5 multilingual customer support.

Official Forex Trading Sponsor
of Premier League Team Burnley F.C.

Follow us

Risk Warning: Trading Forex and CFDs on margin carries a high level of risk and may not be suitable for all investors. Leverage can work both to your advantage and disadvantage. There is a possibility that you may lose all of your initial investments, so you should not risk more than you are prepared to lose. Prior to trading you should make sure you fully understand all the risks involved and take into consideration your level of experience and financial situation. TeleTrade strives to provide you with all the necessary information and protective measures, but if the risks seem still unclear to you, please seek independent advice.

© 2011-2018 TeleTrade-DJ International Consulting Ltd

TeleTrade-DJ International Consulting Ltd is registered as a Cyprus Investment Firm (CIF) under registration number HE272810 and licensed by the Cyprus Securities and Exchange Commission (CySEC) under license number 158/11.

The company operates in accordance with Markets in Financial Instruments Directive (MiFID).

The information on this website is for informational purposes only. All the services and information provided have been obtained from sources deemed to be reliable. TeleTrade-DJ International Consulting Ltd ("TeleTrade") and/or any third-party information providers provide the services and information without warranty of any kind. By using this information and services you agree that under no circumstances shall TeleTrade have any liability to any person or entity for any loss or damage in whole or part caused by reliance on such information and services.

TeleTrade cooperates with SafeCharge Limited, which is an electronic money institution authorized and regulated by the Central Bank of Cyprus and is a principal member of MasterCard Europe and Visa Europe. We also cooperate with Moneybookers and Neteller, which offer electronic e-wallet services authorized and regulated by the Financial Conduct Authority.

Please read our full Terms of Use.

To maximize our visitors browsing experience TeleTrade uses cookies in our web services. By continuing to browse this site you agree to our use of cookies. If you disagree, you may change your browser settings at any time. Read more

TeleTrade-DJ International Consulting Ltd currently does not provide its services to residents or nationals of the USA, and also doesn't provide retail Forex and CFD accounts to residents or nationals of Belgium.

Choose your language/location