- Purchasing Managers’ Indexes from all over the world are moving markets.
- ADP’s Non-Farm Payrolls are also high on the agenda.
- The Bank of Canada is set to leave rates unchanged.
The forex calendar is packed on December 4. Purchasing Managers’ Indexes (PMIs) are topping the agenda and they have been showing moderate growth in most countries during November.
China’s Caixin Services PMI came out at 53.5 points in November against 51.1 in October. The world’s second-largest economy is enjoying expansion – a score above 50 points – also in its manufacturing sector. The figure is negative for the safe-haven Japanese yen.
Markit reported a final Services PMI of 52.2 for France, marginally below expectations. Germany’s final figure came out at 51.7, above projections. The whole euro-zone enjoyed an upgrade to 51.9 points. EUR/USD has been supported by the news.
In the UK, where the focus is on the elections, the Markit/CIPS Services PMI was upgraded to 49.3 points against 48.6 originally reported.
Forex Economic Calendar
Looking forward, Markit’s final Services PMI for the US is expected to confirm the 51.6 scores seen reported in the preliminary estimate. More importantly, the ISM Non-Manufacturing PMI carries expectations for 54.5 points in November, below 54.7 seen in October.
See Services PMI Preview: Manufacturing indicates lower
Also on the calendar, the ADP Employment Change report is projected to show a faster increase in job gains in November. The figure serves as a hint towards Friday’s Non-Farm Payrolls.
See ADP Employment Preview: For better or worse, all roads lead to China.
Last but not least, economists expect the Bank of Canada to leave the interest rate unchanged at 1.75%, completing a full year of sitting on its hands. USD/CAD is set to move according to the accompanying rate statement.
See Bank of Canada Preview: Upbeat tone on investment may send C$ higher
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