Blogs

<p>UK PMI Services was finalized at 29.0 in May, up from April’s 13.4. PMI Composite was finalized at 30.0, up from April’s record low of 13.8. Markit said new works slumped amid cutbacks to business and consumer spending. Employment remains on sharp downward trajectory. Business expectations, however, rise again from March’

<p>Eurozone PMI Services was finalized at 30.5 in May, up from April’s 12.0. PMI Composite was finalized at 31.9, up from 13.6. Among the member states where data are available, improvement were seen in Italy, Germany, France and Spain. But all PMI composite stayed well below 50, with Italy at 33.9, Germany at 32.3, France […]

<p>Euro strengthens again after ECB announced expansion of its crisis asset purchase program PEPP. Euro is also taking Swiss Franc mildly higher too. On the other hand, Sterling is the weakest one as pressured by the selloff against Euro. Canadian Dollar is following as the second weakest for the moment. Other currencies are generally mixed,

<p>Dollar recovers mildly in general as recent selloff is losing some momentum. The recovery is also accompanied by mild retreat in Euro as well as some weakness in Gold. Though, the strength of Dollar’s recovery is far from being strong enough to warrant short term bottoming yet. As for today, Swiss Franc and Yen are […]

<p>There is not much change in the global investor sentiments today, as stock markets continue to rally on lockdown exit optimism. Much better than expected job data from the US also provide something to cheer. Though, in the currency markets, recent moves appear to have been exhausted. Australian Dollar turns notably weaker on profit taking

<p>Turning more optimistic on the economic outlook, BOC scaled back some term financing facilities, while leaving the policy rate and QE programs unchanged. Policymakers suggested that the impacts of the coronavirus pandemic have peaked, despite ongoing uncertainties. The members have turned more optimistic about the economic developments. Th

<p>We expect ECB to add more stimuli and downgrade it macroeconomic projections at the upcoming meeting. It is likely that the more flexible PEPP will be expanded and extended. Previous meetings suggest that the members are reluctant to lower the deposit rate further. The concerns are mainly the limited impact on the economy and the […

<p>The report from the US Energy Information Administration (EIA) shows that total crude oil and petroleum products (ex. SPR) stocks rose 5.04 mmb to 1399.92 mmb in the week ended May 29. Crude oil inventory dropped -2.08 mmb (consensus: +3.04 mmb) to 532.35 mmb. Stockpile fell in 3 out of 5 PADDs. Cushing stock dropped […]

<p>This week we got some encouraging data releases . In Germany, the May labour market report showed a further increase in the unemployment rate to 6.3% from 5.8% in April. Still, the employment losses remain relatively contained, as Kurzarbeit is cushioning the labour market crisis. PMI and IFO point to improving employment expectations in M

<p>The ECB delivered broadly as expected by increasing its PEPP envelope by EUR600bn to EUR1,350bn until June 2021. At the same time, it announced that it had decided to reinvest the PEPP holdings at least until end-2022. Markets reacted with risk on, led by Italy tightening 20bp. PEPP was increased… At the monetary policy meeting […]