This week is expected to be heavy with economic news and traders will want to stay tuned with the rumblings taking place in the US and Japan over further currency interventions. Early this morning, the currencies from both countries experienced a rapid spike which quickly receded.
Some speculations have hinted at an intervention by the Bank of Japan (BOJ), but as of this morning no confirmations have been given. Traders will definitely want to keep an eye on what transpired during the Asian market hours, but may also wish to follow today’s leading events.
Britain’s Manufacturing Purchasing Manager’s Index (PMI) is a leading indicator of economic health based on business conditions as seen from the perspective of purchasing managers. If this figure comes in line with expectations, or higher, the pound may experience some modest bullishness, continuing with its latest trend.
Similar to Britain’s PMI figures, the US Institute of Supply Management (ISM) will be surveying American purchasing managers to gauge business conditions in the US. As with the British PMI data, if the American counterpart’s figures come in line or above expectations, the USD may pare some of its recent losses, but long term pressure will likely remain constant without a significant difference.