Yesterday’s star was the US Dollar as it climbed against pretty much every major currency on the back of positive data. Durable goods orders rose 0.8% in April, which was a major surprise considering expectations were for a 0.7% fall.
Interestingly, this was credited to high defence orders.
US Services PMI also rose to a level of 58.4 in April against expectations of 55, close to the record high of 58.5 which was seen in March 2012. Markets greeted this news as signs that the US economy is back on track.
The Pound had a tough time yesterday and not just against the US Dollar. As predicted here, mortgage approval levels fell to 42,000 from 45,000 the month before. For some unknown reason, the markets were expecting the level to be more around the 45,000 level. Another factor which made the GBP suffer yesterday was the delay/collapse of the Pfizer/Astra Zeneca deal.
Focus today switches to the Eurozone as we have unemployment data from Germany, French PPI, business confidence from Italy and Eurozone consumer confidence amongst other things.
Image: © jcolman / photopin
Posted in Daily Market News on May 30 2014