Busy US Data Weeks Kicks Off With PMIs

NFP Headlines Big Data Week

It promises to be another very busy week in the markets, with particular focus falling on the economic data, the most notable will come on Friday in the form of the US jobs report.

We’ll also get a few notable releases on Monday, with the official and ISM manufacturing PMIs being released alongside construction spending figures. Federal Reserve policy maker and FOMC voter Robert Kaplan is also scheduled to appear today and is one of a number of officials due to speak this week.

Chaos as Catalans Vote For Independence

The illegal Catalonia independence referendum went broadly as expected over the weekend as voters turned out and clashed with Spanish police, who had been tasked with stopping the vote taking place. While hundreds of people were injured in the clashes, a large number of people managed to cast their vote and it’s claimed that 90% of those that did voted for independence.

While the vote isn’t legally binding, traders are clearly a little concerned about the impact that the vote, not to mention how the situation was handled by the Spanish authorities. The IBEX is the worst performing major index in Europe on Monday, down more than 1%, while the euro is also suffering in the aftermath of the vote, down more than half a percent against the dollar.

EUR/USD – Euro Starts Week Lower After Catalonian Chaos

Sterling Slips After PMI as Conservative Party Conference Gets Underway

There’s been a flurry of economic data releases already today, with manufacturing PMIs being released for countries throughout Europe. The data was broadly in line with expectations, with the Italian reading missing slightly and the Spanish coming in a little above. The UK manufacturing PMI slipped a little more than expected, dropping from 56.7 to 55.9, further weighing on the pound this morning.

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Sterling is coming under a little pressure as the Conservative party conference gets underway in Manchester. Concerns about division within the party on both the Brexit strategy and Theresa May’s position as leader continue to paint the picture of instability within the Conservatives, following what was a disastrous election campaign that saw them unnecessarily concede their majority. We’re likely to hear plenty of murmurings over the coming days and there’ll be particular focus on speeches from May and Boris Johnson who has repeatedly undermined her on Brexit and is clearly vying for her position.

Euro’s Catalan Woes

Economic Calendar

For a look at all of today’s economic events, check out our economic calendar.

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Craig Erlam

Craig Erlam

Senior Market Analyst, UK & EMEA at OANDA
Based in London, Craig Erlam joined OANDA in 2015 as a market analyst. With many years of experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while producing macroeconomic commentary. His views have been published in the Financial Times, Reuters, The Telegraph and the International Business Times, and he also appears as a regular guest commentator on the BBC, Bloomberg TV, FOX Business and SKY News. Craig holds a full membership to the Society of Technical Analysts and is recognised as a Certified Financial Technician by the International Federation of Technical Analysts.
Craig Erlam