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Private Sector PMIs Put the Dollar, the EUR, and the Pound in Focus

Earlier in the Day:

It was a busy start to the day on the economic calendar this morning. The Japanese Yen was in action in the early part of the day.

For the Japanese Yen

Inflation and private sector PMI figures were in focus early in the Asian session.

In March, deflationary pressures softened, with core consumer prices falling by 0.1%, which was in line with forecasts. Core consumer prices had fallen by 0.4% in February, year-on-year.

The Japanese Yen moved from ¥107.972 to ¥107.970 upon release of the figures that preceded April’s prelim private sector PMIs.

According to April prelim figures, Japan’s Manufacturing PMI rose from 52.7 to 53.3. Economists had forecast an increase to 53.0. The services sector continued to contract. In April, the Services PMI remained unchanged at 48.3. Economists had forecast a rise to 49.0.

According to the prelim April survey,

  • The Japanese private sector returned to expansion for the first time since Jan-2020, with the composite PMI rising from 49.9 to 50.2.
  • Demand conditions improved, with new business growing for the first time in 15-months. Service sector firms reported a weaker decline, with the manufacturing sector reporting stronger growth.
  • There was also a renewed expansion in export sales, which rose at the quickest pace since Feb-2018.
  • While the manufacturing sector reported a stronger rise in new export orders, service sector firms reported a stronger decline, however.
  • Employment levels continued to improve as a result, registering a 3rd consecutive monthly rise in hiring. The pace of hiring eased, however, with employment across the manufacturing sector falling.
  • In spite of COVID-19 continuing to weigh on the services sector, firms remained optimistic overall.

The Japanese Yen moved from ¥107.884 to ¥107.903 upon release of the figures. At the time of writing, the Japanese Yen was up by 0.08% to ¥107.88 against the U.S Dollar.

For the Majors

The Aussie Dollar was up by 0.04% to $0.7710, while the Kiwi Dollar was down by 0.13% to $0.7163.

The Day Ahead:

For the EUR

It’s a particularly busy day ahead on the economic data front. French, German, and Eurozone private sector PMI figures for April are due out.

While Germany’s manufacturing PMI tends to garner the greatest interest, member state service sector activity will need to be less of a drag on the Euro bloc’s economy.

Late in the day, ECB President Lagarde is also scheduled to speak. Following Thursday’s press conference, however, there shouldn’t be too many surprises.

At the time of writing, the EUR was up by 0.03% to $1.2018.

For the Pound

It’s a relatively busy day ahead on the economic calendar.

Prelim private sector PMI figures for April are due out. April’s services PMI will have the greatest influence on the Pound.

A marked pickup in service sector activity amidst the reopening of the UK economy would be a boost for the Pound.

At the time of writing, the Pound was up by 0.04% to $1.3844.

Across the Pond

It’s a busy day ahead on the economic calendar. Prelim private sector PMIs for April along with new home sales figures for March are due out.

Expect the Services PMI to have the greatest impact on the Dollar and market risk sentiment.

At the time of writing, the Dollar Spot Index was down by 0.06% to 91.279.

For the Loonie

It’s a particularly quiet day ahead on the economic calendar. There are no material stats due out to provide the Loonie with direction.

The lack of stats will leave the Loonie in the hands of private sector PMIs from other economies and COVID-19 news.

At the time of writing, the Loonie was up by 0.08% to C$1.2497 against the U.S Dollar.

For a look at all of today’s economic events, check out our economic calendar.