June Prelim Private Sector PMIs to Drive the Majors

Daily Update - 23rd June 2020

Yesterday’s Market

• CNY- PBoC Interest Rate Decision

Yesterday’s explained

The PBoC Interest Rate Decision is announced by the People´s Bank of China which Interest rates remained unchanged.

 

Today’s Market

• EUR  Markit Manufacturing PMI,  Markit PMI Composite
• GBP Markit Services PMI

Today’s Focus

It’s a busy day ahead on the Eurozone economic calendar. Key stats include June’s prelim private sector PMIs from France, Germany, and the Eurozone. The markets will be looking for a bounce from May levels to support a speedier than expected economic recovery, fueled by fiscal and monetary support. While the headline figures will be key, we can expect the services PMIs to be the key driver. Expect employment and new business to garner plenty of attention.

From the U.S, June’s prelim private sector PMIs will also draw plenty of attention and provide the majors with direction. Expect the services PMI to have the greatest impact. The weekly jobless claims figures have continued to point to dire labor market conditions. This may pin back any marked recovery in the services sector, which is key for the U.S economy.

Away from the economic calendar, COVID-19 news updates and geopolitics will also need monitoring. While there was an uptick in new COVID-19 cases last week, numbers at the start of the week were marginally better. Reports from U.S states, however, could test risk sentiment should more governors raise red flags.