Attention on PMI releases.

The foreign exchange (FX) markets experienced dynamic shifts on the 5th of September 2023 as traders closely monitored the currencies GBP, EUR, and USD. Key economic data releases and global events significantly influenced market trends:

GBP (British Pound): The British Pound (GBP) opened the week with cautious optimism as markets awaited crucial economic data releases. Focus centered on the recently released UK Services Purchasing Managers’ Index (PMI) figures, which provided insights into the health of the UK’s services sector. The data indicated a solid expansion, offering support for the GBP.

Attention also turned to S&P Global Construction PMI figures, scheduled for release later in the week. These figures were expected to provide insights into the construction sector’s performance in the UK, which could influence the GBP’s direction.

EUR (Euro): The Euro (EUR) displayed resilience as traders monitored various economic data releases and global developments. Eurozone Services PMI figures, released recently, provided insights into the Eurozone’s economic performance. The data indicated stable growth, contributing to the EUR’s positive sentiment.

Focus will then shift to German Consumer Price Index (CPI) figures, which were scheduled for release later in the week. These figures could offer insights into inflationary pressures in Germany, a key component of the Eurozone’s economy.

USD (United States Dollar): The United States Dollar (USD) remained a focal point for markets as they observed economic data releases and global events. Following the slightly better-than-expected US Non-Farm Payrolls data, the USD maintained its cautious optimism.

Attention shifted to the upcoming release of S&P Global Services PMI figures, which were scheduled for later in the week. These figures were anticipated to provide insights into the health of the US services sector, a critical component of the country’s economic health.

Key Data Releases:

• UK Services Purchasing Managers’ Index (PMI) Data (GBP): The recently released UK Services PMI data indicated solid expansion in the services sector, providing support for the GBP.
• Eurozone Services PMI Data (EUR): Eurozone Services PMI figures showed stable growth in the Eurozone’s services sector, contributing to the EUR’s positive sentiment.
• S&P Global Construction PMI Data (GBP): Markets awaited the release of S&P Global Construction PMI figures, which could offer insights into the UK’s construction sector performance.

In conclusion, the GBP benefited from robust Services PMI data and construction figures, the EUR found support in stable Services PMI figures, and the USD maintained cautious optimism following better-than-expected Non-Farm Payrolls data. Traders continued to adapt their strategies based on evolving market conditions and pivotal data releases.

Economic Calendar