MARKET BRIEFING – LONDON OPEN 03.07.2015
Today at 9.30am London time Markit Economics will release the Services Purchasing Managers’ Index (PMI) for the United Kingdom.
Markit Economics is an independent, global provider of some of the world’s most significant business surveys. Its indicators are closely watched by the financial market participants since they provide some of the earliest signals of economic performance and hence hints on possible economic policies.
Calculation of the PMI is based on data obtained through the survey of purchasing managers in the services industry. Respondents are asked to rate the relative level of general business conditions such as employment, production, prices, new orders, supplier deliveries, and inventories.
The quick reaction of businesses to market conditions and the fact that their purchasing managers have the most relevant insight into the company’s view of these conditions are the reasons why the PMI is a leading indicator.
Therefore, this release is likely to have high impact on the value of the British pound.
Furthermore, values above 50.0 indicate industry expansion whereas values below this threshold suggest contraction.
Services PMI figures for the UK have been ranging constantly from 54.9 to 62.5 since June 2013. In the previous period of reference this index reached 56.5 level while the forecasts for the current period are more optimistic amounting to 57.4.
The actual level of this monthly indicator beating the expectations is interpreted as a good sign for the currency.
EURUSD
The intraday technical outlook
Trend 1 hour: Down
Target 1: 1.1207
Target 2: 1.0959
Projected range in ATR’s: 0.0107
Daily control level: 1.1150
GBPUSD
The intraday technical outlook
Trend 1 hour: Down
Target 1: 1.5712
Target 2: 1.5498
Projected range in ATR’s: 0.0107
Daily control level: 1.5735
USDJPY
The intraday technical outlook
Trend 1 hour: Down
Target 1: 123.88
Target 2: 122.08
Projected range in ATR’s: 0.85
Daily control level: 124.00
USDCHF
The intraday technical outlook
Trend 1 hour: Down
Target 1: 0.9535
Target 2: 0.9329
Projected range in ATR’s: 0.0103
Daily control level: 0.9502
USDCAD
The intraday technical outlook
Trend 1 hour: Up
Target 1: 1.2639
Target 2: 1.2439
Projected range in ATR’s: 0.0100
Daily control level: 1.2350
AUDUSD
The intraday technical outlook
Trend 1 hour: Down
Target 1: 0.7721
Target 2: 0.7543
Projected range in ATR’s: 0.0089
Daily control level: 0.7640
GOLD
The intraday technical outlook
Trend 1 hour: Down
Target 1: 1177.53
Target 2: 1154.01
Projected range in ATR’s: 11.76
Daily control level: 1179.00
OIL
The intraday technical outlook
Trend 1 hour: Down
Target 1: 57.94
Target 2: 54.88
Projected range in ATR’s: 1.53
Daily control level: 57.80
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