European Open: PMI Day

Asian equities were down overnight, as Chinese Caixin manufacturing data was slightly better than expected, but still below 50 so in contractionary territory for the 8th month in a row. Risk appetite will not be healthy going into Europe.
The Euro is trying to recover slightly, after  the Italian newspaper Il Sole 24 Ore printed and article stating ECB President Mario Draghi said “nothing is firm, too early to tell, premature to make an evaluation and lastly, further stimulus is an open question”. Euro still remains a sell on rallies, but it’s better played on the crosses like EurGbp & EurNzd.
Today is PMI day, so the German & EU PMIs should set the tone for the Euro in particular, and the UK PMI will enhance the odds of a EurGbp breakdown again. In the afternoon, US ISM & FOMC’s Williams will be the main focus.
For charts, refer to yesterday’s Game Plan.

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