Posted on: 02 June 2016, by: Pepperstone Support, category: Market Review
US ISM Manufacturing beat analyst’s estimates to the topside at 51.3, helped along by the highest prices paid reading (63.5) since June 2011.
US Markit PMI for May came out weaker, along with lower US construction spending for April and major US auto sales reports. The Atlanta Fed GDPNow forecast has been downgraded from 2.9% to 2.5%. The Fed Beige Book had little to no impact on the market post release.
OPEC production cap talk has been driving the price action. Sources claims that OPEC is “likely to consider” a new oil output ceiling at Thursday’s meeting. The news reversed a sell-off in WTI from the 47.80 area to 49.20. In late NY, both Iran and oil ministers rubbished that possibility but little reaction was seen.
USDJPY remains heavy but found a solid base at the 109.00 figure. Pressure from 110.00 was seen in early London trading as PM Abe took the stage in Tokyo. The pair then recovered in NY despite a slightly soft read from US data and now retests 109.50/60.
NZD was little moved by Fonterra results. Whole milk prices fell by -1.7%, while the Global Dairy Trade Index rose 3.4%.