Risk sentiment remains weak, US ISM better than expected
US ISM Manufacturing PMI came in better than expected; the “safer” bets remain the main beneficiaries of support today.
Earlier today Swiss retails sales for the month of August dipped by 1.9% compared to the previous +1.9% and Swiss PMI as well came down to 48.2 below the expected and previous reading. Against the Euro the Swiss franc traded in a relatively tight range between 1.2128-1.2166 – staying close to the SNB’s target rate of 1.20.
PMI manufacturing data from the Euro Zone slipped lower despite the better than preliminary readings. In the UK PMI manufacturing rose to 51.1 versus the previous 49.0.
Despite the better than expected data the GBP remained in negative territory losing around 0.35% against the majors. It was reported that pressuring the British Pound lower was an erroneous trade on an electronic dealing platform.
Given the prevailing risk sentiment, the USD remains supported gaining nearly across all the majors except losing only to the JPY. The Japanese Yen remains so far the day’s biggest winner making gains across the board.
The Kiwi also managed a marginal gain over the majors. The NZD/USD was mostly flat and traded in the range of 0.7574-0.7638.
The Euro remained weighed by the events in Greece and today’s highlights remain the EU finance minister’s meetings and clues with regards to the leveraging of the EFSF.
US ISM Manufacturing PMI came out at 51.6 against the previous 50.6 and the expected 50.3. The US manufacturing grew at a faster pace in September.
Rudolf Muscat
RTFX Ltd (“RTFX”) is licensed to conduct investment services business by the Malta Financial Services Authority. This information does not constitute an offer or solicitation and is provided for information purposes only. This information shall not be deemed to constitute advice and should not be relied on as such to enter into a transaction or for any investment decision. Any opinions expressed in this document represent the views of RTFX at the time of preparation. They are thus subject to change without notice. RTFX believes that the information contained herein is accurate as at the date of publication. However, no warranty of accuracy is given by RTFX and no liability in respect of any errors or omissions, including any third party liability, are accepted by RTFX or any director, officer or employee.
