Mario Blascak, PhD
Independent Analyst
What you need to know before markets open
• Set of flash manufacturing and services activity reports is scheduled for Tuesday with Eurozone PMI seen decelerating slightly.
• US President about to appoint new Federal Reserve chairman.
Tuesday’s market moving events
• French manufacturing PMI is expected to pick up slightly to 56.2 in October, while services PMI is expected to remain flat at 57.0.
• German manufacturing PMI is expected to decelerate to 60.1 in October while services PMI are to remain flat at 55.5.
• Eurozone’s manufacturing PMI is set to decelerate slightly to 57.9 in October and services to correct lower to 55.7.
• US flash manufacturing PMI is expected to rise to 53.3 in October while services are to remain flat at 55.2.
• Richmond Fed manufacturing index is expected to fall to 17 in October from reading of 19 in September.
Major forex market movers
• US Dollar was unable to hold onto gains above ¥114.00 mark on Monday with USD/JPY falling to ¥113.20 territory and closing the gap it opened with after Sunday’s elections in Japan.
• EUR will be in a spotlight with flash manufacturing and services activity due on Tuesday.
• The US Dollar should be underpinned by Trump announcing he is going to pick new Fed chairman soon.
Monday’s macro summary
• Catalan PM Puigdemont called for a parliamentary session on Thursday with the risk of Independence declaration weighing on euro in tandem with the ECB announcement of asset purchasing program taper due on Thursday later this week.
• Optimism about business conditions in the UK fell for the first time in a year, a report from Confederation of British Industries showed in October.
• Canada’s wholesale prices rose 0.5% m/m in August after rising 1.5% m/m in July.
• US President Trump is set to appoint the Federal Reserve chairman “soon”.
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