The British Pound may not see a lasting response to July’s manufacturing PMI report as traders withhold directional conviction ahead of this week’s BOE rate decision.

Talking Points:

British Pound Unlikely to Find Lasting Follow-Through in July PMI Figures

US Dollar Looks to PCE, ISM Data to Inform Fed Interest Rate Hike Outlook

See Economic Releases Directly on Your Charts with the DailyFX News App

July’s UK Manufacturing PMI report headlines the economic calendar in European hours. Expectations call for the index to edge narrowly higher to 51.5 from 51.4 recorded in the prior month, reflecting a slight acceleration in the pace of factory-sector activity growth. The outcome may not inspire follow-through from the British Pound however as traders withhold directional conviction until after this week’s much-anticipated Bank of England policy announcement passes.

Later in the day, the spotlight shifts to US economic data. The ISM Manufacturing gauge is expected to print at 53.5 in July, unchanged from the prior month. Meanwhile, the year-on-year Core PCE inflation gauge – the Fed’s preferred price growth measure – is seen holding at 1.2 percent for a second consecutive month.

The latter may prove to command particular attention as traders consider the implications of persistently sluggish inflation for the prospect of a September Fed rate hike. Indeed, the US Dollar dipped alongside front-end bond yields on Friday as disappointing second-quarter wage inflation data crossed the wires. The Employment Cost index gained just 0.2 percent, the least in at least 18 years.

FXCM, L.L.C.® assumes no responsibility for errors, inaccuracies or omissions in these materials. FXCM, L.L.C.® does not warrant the accuracy or completeness of the information, text, graphics, links or other items contained within these materials. FXCM, L.L.C.® shall not be liable for any special, indirect, incidental, or consequential damages, including without limitation losses, lost revenues, or lost profits that may result from these materials. Opinions and estimates constitute our judgment and are subject to change without notice. Past performance is not indicative of future results.

Recommended Content


Recommended Content

Editors’ Picks

EUR/USD steady below 1.0800 after US PCE meets expectations

EUR/USD steady below 1.0800 after US PCE meets expectations

EUR/USD remains depressed below 1.0800 after soft French inflation data, amid minimal volatility and thin liquidity on Good Friday. The pair barely reacted to US PCE inflation data, with the Greenback shedding some pips.  Fed Chair Jerome Powell set to speak ahead of the weekly close.

EUR/USD News

GBP/USD hovers around 1.2620 in dull trading

GBP/USD hovers around 1.2620 in dull trading

GBP/USD trades sideways above 1.2600 amid a widespread holiday restraining action across financial markets. Investors took a long weekend ahead of critical United States employment data next week. Fed Chair Powell coming up next.

GBP/USD News

Gold price sits at all-time highs above $2,230

Gold price sits at all-time highs above $2,230

Gold price holds near a fresh all-time high at $2,236 in thinned trading amid the Easter Holiday. Most major world markets remain closed, although the United States published core PCE inflation, the Federal Reserve’s favorite inflation gauge.

Gold News

Jito price could hit $6 as JTO coils up inside this bullish pattern

Jito price could hit $6 as JTO coils up inside this bullish pattern

Jito (JTO) price has been on an uptrend since forming a local bottom in early January. Since then, JTO has revisited the key swing point formed in early December, suggesting the bulls’ intention to move higher.

Read more

Key events in developed markets next week

Key events in developed markets next week

Next week, the main focus will be inflation and the labour market in the Eurozone. We expect services inflation to be impacted by the easter effect, while the unemployment rate to be unchanged.

Read more

Majors

Cryptocurrencies

Signatures