- Sterling dips in spite of manufacturing price rises
- Euro boosted by German manufacturing data
- US manufacturing hits 13 year high
By David Johnson
The US news headlines are, quite rightly, all about the dreadful event in Las Vegas. That any private citizen should be allowed to own a dozen or more assault weapons is utter lunacy. The pro-gun lobby always say that ‘guns don’t kill people; people kill people’, but school massacres and this grotesque mass murder in Las Vegas prove that people with automatic weapons can kill a lot more people in a lot less time. Wake up America.
The US Dollar is stronger after a manufacturing sentiment index hit a 13 year high. Analysts are furiously trying to work out whether the higher ‘prices paid’ element to this survey is skewed by the hurricane damage, but the USD gained and then shed some of those gains during later trade. Federal Reserve governor Jerome H. Powell speaks this afternoon and there is no other US data today, so it will take on a more important air.
Australian new home sales rose 9.1% in the month to August. Growth was particularly strong in Victoria and Western Australia. That boosted the Aussie Dollar somewhat but the Reserve Bank of Australia stayed entirely neutral when they confirmed the base rate on hold at 1.5% for the 13th
Sterling dipped on a poor sentiment survey from the Institute of Directors and in spite of a pickup in UK manufacturing prices. There was the inevitable Brexit discussion underpinning all of this and that hampered the Pound. However, Sterling did recover some composure before the close and remains stable this morning. Barring anything unexpected, the lack of UK data today should see the Pound tread water.
The Euro had a good day after German manufacturing growth hit its fastest growth rate in more than six years. Obviously, Germany is not the Eurozone, but German manufacturers are the powerhouse underpinning the Eurozone, so this is important for market sentiment towards the Euro. Data wise, we only have the Eurozone Producer Price Index today and Irish unemployment figures, so the Euro is likely to be a tad calmer than of late.
Tomorrow is awash with service sector data and indices, so the market will be livelier. Until then, have a great Tuesday.
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