Europe and the UK continue to benefit from the strength in the dollar which has caused local currencies to depreciate. The knock on effect for exports is evident with manufacturing indices improving in both regions month over month. Gains in the Euro Area were led by Italian manufacturing which saw the PMI expand from 5.19 to 53.3. Germany also experienced growth, with the manufacturing PMI printing at 52.8 versus 52.4 in the prior period. While the official US manufacturing PMI managed to beat the prior figure, the ISM Manufacturing PMI fell, with the contraction in new orders a main source of concern. Today’s factory orders data will likely confirm the purchasing manager’s sentiment towards future growth expectations, with estimates of continued contraction. GBPUSD and EURUSD are ticking higher as dollar strength reverses amid worse than expected employment data.
Global Manufacturing Expansion Prevails
Daily Analysis - 02/04/2015