Monday, November 2, 2015

US Manufacturing and employment data in the limelight – Danske Bank

FXStreet (Delhi) – Research Team at Danske Bank, suggest that the October ISM manufacturing and non-manufacturing surveys will be in focus today.

Key Quotes

“The order-inventory balance suggests that we could see further weakness in the manufacturing ISM in October and on average the regional PMIs also point to continued weakness in the manufacturing sector. We expect another decline in the ISM for October to 49.6, which would be the weakest since November 2012. A reading below 50 will certainly question the current 50/50 pricing of a Fed lift-off in December.”

“Today, October PMI figures for the periphery countries will be released. Information from the flash PMI figures last week suggests that the Spanish and Italian manufacturing PMIs will both rebound slightly after the drop in September. Note that despite the drop last month, Italian and Spanish PMIs remain at their highest level since the start of 2011.”

“The most important event this week will the US October employment report released on Friday. Job growth slowed to just below 140,000 on average in September and August, which in our view is below the pace (>150,000) needed for the Fed to initiate the hiking cycle. We estimate that job growth increased to 170,000 in October and the unemployment rate held steady.”
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