Dollar Bulls were back in the game yesterday as the Greenback strengthened across the board, considerably weakening other majors including the Euro and the British Sterling. With not much of fundamentals on the tap, the sole economic data was the construction spending, which rose 1.1% beating estimates. EURUSD broke below 1.24 handle to end the day lower at 1.23759, while the Cable gave up the gains made previously.
The Eurozone PPI was the only economic release during the European trading session which came out weaker than expected m/m, declining -0.4%, while the PPI y/y was in line with expectations. The Euro initially shrugged off the weak release only to give up its gains around the US trading session open.
UK’s construction PMI came in weaker than expected, declining to 59.4 below estimates of 61. The construction PMI data weighed in on the Cable as the Pound started to tread lower ever since. The Cable closed back into its range of 1.578 – 1.558 levels.
Economic data is packed today with services PMI due from Eurozone and the UK along with the US ADP nonfarm payroll change schedule.
Fundamentals Recap – December 2, 2014
• ANZ commodity prices m/m decline -1.6%, from -0.8% previously
• Australia building approvals m/m rises 11.4% above estimates
• Japan average cash earnings y/y falls to 0.5% below 0.8% estimates
• RBA cash rate unchanged at 2.5%
• UK construction PMI below estimates at 59.4 vs. 61
• Eurozone PPI m/m declines -0.4%; PPI y/y decline -1.3%
• US construction spending m/m beats estimates, rising 1.1% above estimates of 0.6%
Fundamentals – December 3 2014
• Australia GDP q/q rises less than expected at 0.3% vs. 0.7% expectations; GDP y/y slows to 2.7% vs. 3.1% estimates
• China non manufacturing PMI softly higher at 53.9; HSBC services PMI at 53 vs. 52.9
• Switzerland GDP q/q to rise 0.3%; yearly basis to rise 1.4%
• Spain services PMI to be soft at 55.2; Italy services PMI to be soft at 50.2; French services PMI to fall to 48.8l German PMI to remain unchanged at 52.1
• Eurozone composite PMI to be unchanged at 51.4; services PMI to be unchanged at 51.3
• UK services PMI to rise to 56.5
• Eurozone retail sales m/m to rise 0.5%; retail sales y/y to rise 1.6%
• US ADP employment change to show 224k new jobs being added for the previous month
• US Unit labor costs q/q to rise 0.1% and nonfarm productivity y/y to rise 2.4%
• US PMI services to be soft at 56.5
• Bank of Canada rate statement