Markets React to PMI Releases.

The foreign exchange (FX) markets experienced notable movements yesterday reacting to key data releases and geopolitical developments. Here’s a recap of the events that shaped the market for the currencies GBP, EUR, and USD:

GBP (British Pound): The British Pound (GBP) encountered mixed trading conditions on 24th July. Markets reacted to the release of UK PMI (Purchasing Managers’ Index) data for July, which was released yesterday. The PMI figures provided insights into the country’s economic activity and the performance of the private sector. Additionally, any geopolitical developments surrounding Brexit negotiations influenced the GBP’s movements.

EUR (Euro): The Euro (EUR) faced challenges on 24th July due to negative economic data releases. Markets received surprising signals from the Eurozone’s PMI (Purchasing Managers’ Index) figures, which showed contraction in both the region’s manufacturing and services sectors. The negative PMI data raised concerns about the Eurozone’s economic recovery and weighed on the EUR’s performance. Additionally, speeches from European Central Bank (ECB) officials were monitored for hints regarding the central bank’s monetary policy trajectory.

USD (United States Dollar): The United States Dollar (USD) had a mixed performance on 24th July. Focus shifted toward the upcoming Federal Reserve’s interest rate decision, leading to cautious trading behavior. Additionally, USD PMI data, which was released yesterday, added to market sentiment surrounding the US economy.

Key Data Releases:

• GBP PMI Data: The release of UK PMI data for July took place yesterday, providing insights into the country’s economic activity and the performance of the private sector. The PMI figures contributed to the market sentiment surrounding the GBP.
• Eurozone PMI Data: The release of Eurozone PMI data for July showed contraction in both the region’s manufacturing and services sectors. The negative PMI data raised concerns about the Eurozone’s economic recovery and weighed on the EUR’s performance.
• Federal Reserve Interest Rate Decision: Markets awaited the upcoming Federal Reserve’s interest rate decision scheduled for tomorrow. The decision would offer insights into the central bank’s monetary policy stance and could impact the performance of the USD based on the outcome.

Economic Calendar