24 Oct 2013
European open: PMIs in focus
FXstreet.com (London) - Much of today’s focus will be on PMI numbers. Chinese HSBC flash PMI numbers overnight helped to ease some of the risk-off effects on sentiment of tightening Chinese banking conditions. Chinese manufacturing PMI in October rose to 50.9 – up from 50.2 and beating expectations of 50.4. New orders are at a seven-month high, lifting AUD and NZD.
NZD was given further support on trade deficit numbers at –NZD199m, shrunk by strong exports and lower imports. While lower imports might usually be a concern, the low figure follows robust July and August numbers. The numbers should help reduce the -4.3 percent GDP current account deficit over the third quarter.
In Europe, it is expected that the Eurozone will be given a boost by improving PMIs for October – particularly French and German numbers. However, risk may come from any drag on sentiment caused by the US shutdown mid-month.
UK CBI index numbers are expected to strengthen. Bank of England Mark Carney will speak at an event this afternoon and his words will be scrutinised closely for any signal that the central bank may be considering shortening its projections for a rate hike.
NZD was given further support on trade deficit numbers at –NZD199m, shrunk by strong exports and lower imports. While lower imports might usually be a concern, the low figure follows robust July and August numbers. The numbers should help reduce the -4.3 percent GDP current account deficit over the third quarter.
In Europe, it is expected that the Eurozone will be given a boost by improving PMIs for October – particularly French and German numbers. However, risk may come from any drag on sentiment caused by the US shutdown mid-month.
UK CBI index numbers are expected to strengthen. Bank of England Mark Carney will speak at an event this afternoon and his words will be scrutinised closely for any signal that the central bank may be considering shortening its projections for a rate hike.