Market Brief May 23rd: German Manufacturing PMI to influence the euro


Bitcoin & Ether- both crypto currencies dropped 3 % each on Tuesday. This is quite normal since markets are down trending. There have also been rumors that Russia and Iran are looking to utilize crypto markets in order to evade sanctions and ultimately to decrease dependency on the U.S. dollar. We’re yet to see if those intentions would be realized and whether the U.S. would hit back with regulation of those markets.

Germany

EUR, 08:30 a.m. GMT + 1, German Manufacturing PMI (May) –Predictions point at an expected decrease at 57.9 down 0.2 from April when manufacturing came out at 58.1. A reading above 50 shows an expansion while a drop below that level could send a warning signal that the economy is shrinking. So, a higher than expected performance should be seen as positive for the euro, while a major drop could bring it down.

The United Kingdom

GBP, 09:30 a.m. GMT + 1, CPI (YoY) (Apr) – the inflation index for April this year is expected to remain unchanged from last year’s result at 2.5%. Should the news surprise by a higher reading, this should be read as bullish for the sterling while a lower CPI could depreciate the currency.

The United States

USD, 15:00 p.m. GMT +1, New Home Sales (Apr) – market analysts project a decrease of 14, 000 new homes sold during the month of April compared to 694K sold in March. Should the actual reading surprise with an increase, this should strengthen the dollar. A significant miss from expectations where a lot fewer homes were sold, could affect the dollar negatively.

OIL, 15:30 p.m. GMT +1, Crude Oil Inventories – market analysts forecast a decrease in the level of inventories during the past week at – 2.500M barrels compared to the result from the previous week which reported a change of – 1.404M barrels. If there is an even more serious cut to the number of barrels, this should be read as a bullish sign for the price of oil. A potential oversupply, on the other hand, would be of negative influence.

USD, 19:00 p.m. GMT +1, FOMC Meeting Minutes – minutes from the Fed are highly anticipated by all market participants. Based on minutes traders can have access to stance on monetary policy of the entire U.S. economy. It is important to remember that decisions are based on solid economic data and traders as well as financial institutions can deduct clues that influence interest rates.

Reference:

https://www.ccn.com/iran-and-russia-consider-using-cryptocurrency-to-evade-us-sanctions-report/

Wishing you Happy and Successful Trading!

 

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