Danske Bank expects positive figures for U.S manufacturing and non-manufacturing PMIs, and unemployment rate in November

Danske Bank expects positive figures for U.S manufacturing and non-manufacturing PMIs, and unemployment rate in November

  • U.S manufacturing/non-manufacturing PMIs and unemployment report to be released this week.
  • Danske Bank expects positive figures for economic data that will send the greenback further up.
  • China announced better than expected manufacturing/non-manufacturing PMIs on Saturday.
  • Average hourly earnings, crude oil inventories, Opec meetings, and consumer sentiment, among other market movers for the week.

Amidst the rising U.S – China trade complications, the greenback managed to perform optimally in the last week. The U.S dollar kept its strength against all major currencies in the forex market to end November on a fairly positive note. The U.S dollar index closed above 98.00 last week hinting at the prospect of further gains in the upcoming weeks.

ISM Manufacturing And Non-Manufacturing PMIs To Be Announced This Week

As per the forex analysts, the upcoming week is going to be a busy one for the U.S economy with multiple data expected to stir major movements in the currency market. According to the Danske Bank, investors and analysts alike are focused on the ISM indices and jobs report to be announced later in the week. The forecast for both reports is fairly positive. Aligning with the forecast or beating the estimate can be expected to further extend the greenback’s dominance over the other major currencies.

Despite the trade complications, China printed positive figures for manufacturing and non-manufacturing PMIs on Saturday. Manufacturing PMI for the United States of America is set to be released by the Institute of Supply Management (ISM) at 15:00 GMT on Monday. Data for the non-manufacturing sector, however, will be released later on Wednesday.

Following upbeat data for China, experts are expecting optimism for the U.S as well. ISM Manufacturing PMI for October remained capped at 48.3 that represented slight contraction in the U.S economic growth. Economists are anticipating ISM to reveal November’s manufacturing PMI at 49.2. More importantly, however, investors are interested to see if November’s figure hints at the U.S economy climbing out of contraction. A figure above 50 is generally considered as the standard for representing economic growth.

U.S Unemployment Rate Estimated At 3.6% For November

On the other hand, employment in the manufacturing and non-manufacturing sectors has remained under pressure for a while as well. November’s unemployment rate to be announced on Friday marks an important economic report that is likely to end the week at high volatility. Unemployment in the United States of America was noted at 3.6% in October. Analysts are expecting the figure to stand firm in November. A decline in the unemployment rate, however, will further fuel the U.S dollar’s strength in the forex market.

Other noticeable data to be released this week include the U.S average hourly earnings monthly report, University of Michigan (UoM) consumer sentiment index, Opec meetings, and the U.S monthly crude oil inventories. Macroeconomically, events of the U.S – China trade deal will continue to direct the global financial markets.

By Michael Harris
Specialising in economics by academia, with a passion for financial trading, Michael Harris has been a regular contributor to Invezz. His passion has given him first hand experience of trading, while his writing means he understands the market forces and wider regulation.

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