Summary:

  • Better than forecast PMIs from the Eurozone boost the single currency
  • USD also higher on balance after above consensus PMI data
  • Records continue to fall for US stocks 
  • Bitcoin falls as hard fork begins
  • Oil price finely balanced ahead of inventory data
  • NZD drops on government talk of RBNZ reform

Today has seen a series of PMI releases, with the majority of them coming in better than forecast. This morning the data from the Eurozone was pleasing and manufacturing surveys from France, Germany and a Eurozone-wide reading all beat expectations. This has seen a steady gain for the Euro in the build up to Thursday’s ECB meeting.  

The US equivalents were also strong, with both manufacturing and services form across the Atlantic seemingly continuing their recent good performance. The release saw the Tnote fall to test a potentially key level and if we do get a break lower in this market it could lead to further moves in Gold and the US dollar.

 2017 has been a year of records for US stock markets with the US500 posting an all-time high on no fewer than 66 occasions. This is the most in a single year in over two decades and what is perhaps even more remarkable than the number of new peaks is the lack of significant drawdowns. Yesterday saw the S&P500 break its previous record for the number of days without a 3% drop, with a fall of this scope not seen in the past 241 days.

 The much hyped “hard fork” in Bitcoin occurred overnight, with the creation of Bitcoin Gold. The move was seen by some to be positive for the original bitcoin but this hasn’t been the case with BTCUSD dropping by almost 4%. The market is a clear laggard amongst cryptocurrencies today with Ethereum and Ripple both enjoying gains around the 10% mark.

A slide seen in Brent Oil this afternoon has seen the benchmark fall back lower and price is currently sitting at a potentially pivotal level ahead of the weekly inventory data from the US. Tonight will see the private API inventory data released before tomorrow’s more widely viewed DOE equivalent. An in-depth technical overview of Oil.WTI can be found here

One of the worst performing currencies today has been the New Zealand dollar with the Kiwi sinking to a 5-month low against the US dollar. The drop comes on talks of central bank “reform” from the new coalition government which may see the RBNZ responsible for the labour as well as inflation as part of a new dual mandate.