Chinese Factory Activity Seen Cooling in May

Factory activity in China is expected to have grown at its slowest pace in eight months, a Reuters poll showed, as previous stimulus fades and policymakers focus on tackling rising debt – a sign the cooldown in manufacturing will persist through 2017.

The manufacturing sector is also losing a tailwind from rising producer price inflation, which helped fuel strong industrial profits but is now coming off from more than five year highs.

The official manufacturing Purchasing Managers’ Index (PMI) is expected to come in at 51.0, which would be the lowest reading since September albeit the tenth straight month of growth, according to a median forecast of 30 economists in the Reuters poll.

Reuters

Further Woes For Oil and GBP

Slip Sliding Away : Oil

USD/CAD Canadian Dollar Lower After OPEC Extension Announcement Meets Expectations

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Craig Erlam

Craig Erlam

Senior Currency Analyst at OANDA
Based in London, England, Craig Erlam joined OANDA in 2015 as a Market Analyst. With more than five years' experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while conducting macroeconomic commentary. He has been published by The Financial Times, Reuters, the Wall Street Journal and The Telegraph, and he also appears regularly as a guest commentator on networks including Sky News, Bloomberg, CNBC and BBC. Craig holds a full membership to the Society of Technical Analysts and he is recognized as a Certified Financial Technician by the International Federation of Technical Analysts.