It’s PMI day in Europe
The dollar maintains a more stable position on the day as we see a decline in risk, with the constant barrage of US-Chinese headlines that continue to spit.
It also happens when we see US stocks hitting a tipping point, yesterday’s S&P 500 gains pushing it towards a test of its key daily moving averages now:
So is it taking a profit before the next push to try and break those levels? Or has the buzz of American-Chinese tensions started to gnaw investor optimism?
In the future, we will get preliminary PMI surveys in the euro area. They should post a modest rebound, but suffice it to note that there are some caveats when interpreting the overall figure. Details will be more important.
07:15 GMT – France May flash manufacturing, services, PMI composite
07:30 GMT – Germany can flash manufacturing, services and PMI composite
0800 GMT – Euro zone May flash manufacturing, services, PMI composite
Activity is expected to rebound, with a composite overall reading for the euro area expected at 27.0 after recording a dark 13.6 last month. Looking at the number alone, more than 20 prints are still horrible and terrible, but they seem to be “twice as good” as last month. However, just note that this may not be the case since the services index is generally a question of “how is your business activity compared to last month?”. So you can imagine that May (less restrictions) is better than April (large-scale restrictions), but that cannot emphasize the gravity of the economic situation.
08:30 GMT – UK May flash manufacturing, services, PMI composite
1000 GMT – United Kingdom May CBI trends in total orders, selling price
That’s all for the coming session. I wish you all the best days ahead and good luck with your trading! Stay safe there.