The flash PMI results for May were mixed. In the United Kingdom, both sectors showed growth, while the services reading fell. Meanwhile, both Eurozone PMIs rose, while the manufacturing sector remained in contraction mode. Similarly, both of the US PMIs increased in May.
The numbers, however, are unlikely to prevent the ECB’s rate cut in June. The publication had no significant impact on Eurozone market rate expectations. Currency-wise, after treading water in early trading, the dollar reclaimed the upper hand.
However, the biggest FX pairings were limited to fairly narrow ranges yesterday. As trade begins this morning, UK retail sales fell 2.3% in April (vs. -0.6% expected).
However, the impact on sterling was modest in early trading. There is a very light data calendar for the rest of today, so comments from central bank officials will be in focus.