All eyes on US ISM manufacturing today – Danske Bank

By FXStreet FXStreet (Delhi) – Research Team at Danske Bank, suggests that the main event today is US ISM manufacturing.

Key Quotes

“We look for a stabilisation of the index after several months of decline. If it stabilizes or rises slightly it should support risk assets as it would dampen the fear of recession. Regional surveys and PMI have been a bit mixed with some showing sharp improvement (like Chicago PMI on Friday), while others have been very weak (such as Empire and Dallas index).

US core PCE deflator is the Fed’s favourite measure of inflation. We look for it to rise 0.1% m/m pushing the y/y rate up to 1.4% in December from 1.3% in November.

UK PMI manufacturing is expected to stay unchanged at 51.9 in December.

On the central bank front ECB president Mario Draghi speaks in EU Parliament at 17.00 CET, while Fed vice president Stanley Fischer (voter, neutral) speaks tonight.

Focus the rest of the week will be on US non-farm payrolls, US ISM non-manufacturing and Bank of England meeting.”
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Source:: FX Street