GBP/USD Daily Forecast – 05 December

Yesterday's session brought UK Construction PMI figures. November data pointed to a moderate rebound in UK construction output, with business activity rising at the strongest rate since June. Adjusted for seasonal influences, the IHS Markit/CIPS UK Construction Purchasing Managers’ Index® (PMI®) picked up from 50.8 in October to 53.1 in November, to remain above the 50.0 no-change value for the second month running. The latest reading was the highest for five months and signalled a solid rate of business activity growth across the construction sector.

AUD/USD Daily Forecast – 05 December

Yesterday, from Australia, Company Operating Profits figures were released. The trend estimate for inventories rose 0.1% in the September quarter 2017. The seasonally adjusted estimate rose 0.2% this quarter. The trend estimate for Manufacturing sales of goods and services rose 0.9% this quarter. The seasonally adjusted estimate rose 2.0% this quarter. The trend estimate for Wholesale trade sales of goods and services fell 0.4% this quarter. The seasonally adjusted estimate rose 0.7%. The seasonally adjusted estimate for company gross operating profits fell 0.2% in the September quarter 2017. The seasonally adjusted estimate for wages and salaries rose 1.1% in the September quarter 2017.

EUR/USD Daily Forecast – 04 December

From Eurozone, on Friday, Spanish Manufacturing PMI figures were released. The PMI rose to 56.1 in November from 55.8 in October, the highest reading since February 2007. Operating conditions have now improved on a monthly basis throughout the past four years. The rate of growth in manufacturing output quickened for the third successive month in November, reaching the strongest since May 2015. The sharp rise in production resulted in a third successive monthly increase in stocks of finished goods, the fastest in nine years.

GBP/USD Daily Forecast – 04 December

Friday was marked by UK Manufacturing PMI figures. November saw the UK manufacturing sector move up a gear, with rates of increase in new orders and production among the best registered over the past four years. This tested capacity and encouraged further job creation, with employment rising to the greatest extent since June 2014. The seasonally adjusted IHS Markit/CIPS Purchasing Managers’ Index (PMI) rose to 58.2 in November, up from 56.6 in October (originally reported as 56.3), its highest level since August 2013.

In the US session also ISM Manufacturing PMI data was published. The November PMI registered 58.2 percent, a decrease of 0.5 percentage point from the October reading of 58.7 percent. The New Orders Index registered 64 percent, an increase of 0.6 percentage point from the October reading of 63.4 percent. The Production Index registered 63.9 percent, a 2.9 percentage point increase compared to the October reading of 61 percent. The Employment Index registered 59.7 percent, a decrease of 0.1 percentage point from the October reading of 59.8 percent.

From the UK, on Monday, Construction PMI figures will be published. Analysts predict incline to 51.2. There will be no major data releases in the US part of the session.

Figures to watch:

Construction PMI (Monday 10:30)