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2 Apr 2014
Risk buoyant overnight, downside risks to UK construction PMIs
FXStreet (London) - Yesterday’s positive US manufacturing indices helped to support risk sentiment overnight. Equity markets were buoyant, with the Nikkei up 1.04 percent to 14,946.32, helped by a weaker yen.
USD/JPY gained 0.14 percent overnight while the AUD/JPY carry trade hit 2014 highs at JPY95.9955.
UK construction risk
UK construction PMIs due today at 9:30 GMT are expected to come in at 63.0, up from the February 62.6 print. However, yesterday’s slightly weaker manufacturing PMI suggests that we may see a slight deceleration of construction expansion.
European policymakers today reconvene for the second day of the Ecofin meetings in Athens, with today’s session devoted to European Banking Regulatory Framework Reform.
ADP numbers in focus ahead of NFPs
With optimism running high ahead of Friday’s non-farm payroll report – consensus expectations are for a 200k print – today’s ADP employment report will be under close scrutiny. Although the ADP report is usually a pretty weak predictor of NFPs, and miss on the consensus forecast of 195k will ramp up nervousness ahead of Friday’s print. February factory orders data due this afternoon is expected to show a 0.9 percent rise, making up for the 0.7 percent decline in January, and in line with manufacturing surveys yesterday which indicated that demand was returning following disruptive US weather conditions.
USD/JPY gained 0.14 percent overnight while the AUD/JPY carry trade hit 2014 highs at JPY95.9955.
UK construction risk
UK construction PMIs due today at 9:30 GMT are expected to come in at 63.0, up from the February 62.6 print. However, yesterday’s slightly weaker manufacturing PMI suggests that we may see a slight deceleration of construction expansion.
European policymakers today reconvene for the second day of the Ecofin meetings in Athens, with today’s session devoted to European Banking Regulatory Framework Reform.
ADP numbers in focus ahead of NFPs
With optimism running high ahead of Friday’s non-farm payroll report – consensus expectations are for a 200k print – today’s ADP employment report will be under close scrutiny. Although the ADP report is usually a pretty weak predictor of NFPs, and miss on the consensus forecast of 195k will ramp up nervousness ahead of Friday’s print. February factory orders data due this afternoon is expected to show a 0.9 percent rise, making up for the 0.7 percent decline in January, and in line with manufacturing surveys yesterday which indicated that demand was returning following disruptive US weather conditions.