London Session Recap – December 2, 2013

  • U.K. manufacturing PMI jumps to 58.4, upward revision in previous figure
  • Spanish PMI falls short of consensus, Italian PMI as expected at 51.4
  • U.S. ISM manufacturing PMI coming up

The Greenback refused to back down in today’s London trading session, pushing EUR/USD down to the 1.3550 minor psychological support and GBP/USD back below 1.6400. Data from the euro zone was mixed, with Spanish PMI falling short of consensus and reflecting industry contraction at 48.6 and Italian PMI coming in line with expectations at 51.4.

As for the U.K., the manufacturing PMI came in much higher than expected at 58.4 for November while the October figure was upgraded from 56.5 to 56.0. Although Cable wasn’t able to take advantage of this strong figure, the pound was still able to extend its gains against the yen, as GBP/JPY climbed to a high of 168.62.

In the next few hours, we’ll see the U.S. ISM manufacturing PMI for November, which is expected to show a dip from 56.4 to 55.2. However, a stronger than expected reading might provide an additional boost for the U.S. dollar. Traders are also likely to keep close tabs on the labor component of the PMI, which might provide some clues for the upcoming NFP release. Don’t forget that Fed head Bernanke is set to give a speech in today’s New York session as well.

See also:

Asian Session Recap

U.S. Session Recap

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