November Purchasing Managers’ Indexes (PMI), due out at 14:45 GMT, are projected to slide from the highs but remain in growth territory. Markets are worried and a weak reading could hurt the US dollar, Joseph Trevisani, an Analyst at FXStreet, reports.
Key quotes
“The preliminary Markit Manufacturing PMI is forecast to slip to 53 in November. October’s 53.4 was the highest reading since January 2019. The pandemic low as 36.1 in April. The Services PMI is expected to fall to 55. The 56.9 score in October was the best since April 2015. The pandemic low was 26.7 in April.”
“Markets are concerned. The government imposed closures are rising around the country. Although most new restrictions are in the already decimated restaurant industry and it is unknown how many jobs will be affected, sensitivities are understandably high.”
“While Markit PMI indexes do not have a separate employment index as ISM does, any unexpected slippage in the general numbers for November will receive the worst interpretation. Markets are anxious. Equities, the dollar and yields will fall if the purchasing managers are nervous.”
Share
