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21 May 2014
Next 24 hours in FX, all about PMI's – RBS
FXStreet (Guatemala) - Analysts at RBS looked at the next 24 hours in FX.
Key Quotes:
“The HSBC preliminary manufacturing PMI is released in China for May along with preliminary PMIs in Germany, France, and the Euro-area”.
“The ECB looks likely to ease monetary policy at its June meeting and the EUR is trading heavy this week as expectations for easing are further priced. We are modestly above the consensus expecting the composite PMI to rise to 54.2 in May, but a disappointment in PMIs may keep the pressure on EUR longs and further cement easing expectations. Still, while the timing of an ECB move in June has been strongly signaled, it is still unclear which of the variety of options in the ECB's toolkit the Bank will use. Only one ECB Governing Council member, Bank of Spain's Line, is due to speak tomorrow”.
“US existing home sales for April are released tomorrow along with March retail sales in Canada. Pending home sales, which tend to lead existing home sales by a few months, rose in March for the first time since June and bodes well for April existing sales. After a few months of flat sales momentum, we expect a modest pickup in the existing home sales pace to 4.70 million units annualised”.
Key Quotes:
“The HSBC preliminary manufacturing PMI is released in China for May along with preliminary PMIs in Germany, France, and the Euro-area”.
“The ECB looks likely to ease monetary policy at its June meeting and the EUR is trading heavy this week as expectations for easing are further priced. We are modestly above the consensus expecting the composite PMI to rise to 54.2 in May, but a disappointment in PMIs may keep the pressure on EUR longs and further cement easing expectations. Still, while the timing of an ECB move in June has been strongly signaled, it is still unclear which of the variety of options in the ECB's toolkit the Bank will use. Only one ECB Governing Council member, Bank of Spain's Line, is due to speak tomorrow”.
“US existing home sales for April are released tomorrow along with March retail sales in Canada. Pending home sales, which tend to lead existing home sales by a few months, rose in March for the first time since June and bodes well for April existing sales. After a few months of flat sales momentum, we expect a modest pickup in the existing home sales pace to 4.70 million units annualised”.