In a relatively quiet London session, the buck had an overall mixed performance against the majors. EUR/USD was about 20 pips higher into the 1.2845/50 zone despite poor economic data out of the Euro-zone. French and German October PMI manufacturing indexes were revised lower to 40.6 and 42.9 respectively -- both worse than expected. Meanwhile, the Euro-zone measure fell to 41.1 from 41.3 previously.
GBP/USD was crushed more than -110 pips on poor economic data and growing speculation that the BOE will cut rates more than the currently expected -50 bps this week. PMI manufacturing for the UK was a touch better than expected but the report looked terrible nonetheless, coming at a paltry 41.5 after a similar 41.2 print the prior month. This saw Cable dip from an open near 1.6300 towards the 1.6185/90 area in London trading.
The JPY crosses were pretty much unchanged and held on to the gains in the previous session. USD/JPY was sitting near 99.20/30 and right where it opened London trading. EUR/JPY was up a modest 15 pips towards the 127.40/50 area. US stock futures are pointing to a small positive open, but the ISM manufacturing report looms at 1000ET and this could throw a wrench into the good US equity performance seen over the last few days. Look for a change in direction here to see JPY crosses follow lower.
Upcoming Economic Data Releases (NY Session) Prior Estimate
- 11/3/2008 15:00 GMT US ISM Manufacturing OCT 43.5 41.8
- 11/3/2008 15:00 GMT US ISM Prices Paid OCT 53.5 48
- 11/3/2008 15:00 GMT US Construction Spending MoM SEP 0.00% -0.80%
- 11/3/2008 16:00 GMT EC Euro-Area Finance Ministers Meet 3-Nov
- 11/3/2008 US Domestic Vehicle Sales OCT 9.6M 9.1M
- 11/3/2008 US Total Vehicle Sales OCT 12.5M 12.0M
