British Pound May Fall As PMI Data Undercuts BOE Rate Hike Bets
Dailyfx | Jul 03, 2015 07:35AM ET
Talking Points:
- British Pound May Fall as June PMIs Undercut BOE Tightening Speculation
- Australian Dollar Drops as Soft Retail Sales Data Inspires RBA Rate Cut Bets
- See Economic Releases Directly on Your Charts with the DailyFX News App
The final set of June’s UK PMI data figures headlines the economic calendar in European trading hours. The composite index is expected to show the pace of manufacturing- and service-sector activity growth rebounding after sliding to a five-month low in May. UK news-flow has tended to underperform relative to consensus forecasts recently, opening the door for a downside surprise. Such an outcome may push back BOE rate hike expectations, weighing on the British Pound.
The Australian Dollar underperformed in overnight trade, falling as much as 0.9 percent on average against its top counterparts. The decline followed a disappointing Retail Sales report. Receipts grew 0.3 percent in May, falling short of forecasts calling for a 0.5 percent increase. April’s reading was also revised downward to reveal a 0.1 percent contraction. The Aussie ’s drop tracked a slide in front-end bond yields, suggesting soft news-flow inspired RBA rate cut speculation.
Original post
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.