ISM Manufacturing Index Drops Sharply in May, Will Weaker USD or "Risk-Off" ...

The Manufacturing PMI showed its biggest 1 month drop since 1984, with the index coming in at 53.5 compared to April's 60.4. Forecasts were for a much smaller decline to the 57-58 range. Regional manufacturing surveys have underperformed all month and we see it showing up strongly on the national level.

Source: ActionForexall Rss Feed

EUR/USD Drops to Support Confluence

Price action on EUR/USD (a daily chart of which is shown) as of Friday (5/06/2011) after the Non-Farm Payrolls report has descended to hover around a confluence of support that includes the key 1.4500 support level and an uptrend support line that extends back to the early January low. Therefore,

Commodity Price Drops Would Ease MPC Dilemma

The MPC left policy unchanged in May, leaving Bank Rate at 0.50% and the QE target at £200bn. We forecast this outcome some time ago, but markets were also unsurprised by the time of the decision. This week's Inflation Report and the accompanying press conference will provide the first insight

Australian Retail Sales Disappoint, AUDUSD Drops

A surprise lower consumer retail sales data for March reduces rate hike expectations, sending Australian dollar lower.