RationalFX : Sterling steadied against a buoyant dollar on Wednesday amid a wider selloff in global stock markets as data showed factory activity across the world contracting sharply due to the coronavirus pandemic…
Manufacturing gauges tumbled across the globe, with Purchasing Managers’ Index (PMI) surveys in Asia, the euro zone and the UK underscoring the widening damage wrought by the pandemic that has infected more than 700,000 people, upended supply chains and led to city lockdowns worldwide. Data showed output from Britain’s manufacturing sector shrank at the fastest pace since the euro zone debt crisis in March as the spread of coronavirus led to spiralling delays and hammered business confidence.
The final version of the IHS Markit/CIPS Purchasing Managers’ Index (PMI) slumped to 47.8 — its lowest since July 2012 — from 51.7 in February, slightly weaker than a preliminary “flash” reading of 48.0 recorded earlier in March.
The dollar held gains on Thursday as investors rushed to the safety of the world’s most liquid currency given the massive disruption to global trade due to the coronavirus pandemic.
Markets were spooked after U.S. President Donald Trump’s dire press briefing late Tuesday, in which he warned Americans of a “painful” two weeks ahead in fighting the coronavirus even with strict social distancing measures.
The starkest evidence of the damage came last week when weekly U.S. initial jobless claims, one of the earliest gauges of economic trends, jumped to 3.28 million, blowing past the previous record of 695,000 set in 1982.
The next jobless claims data, due at 1230 GMT, is expected to show another 3.50 million applications last week.
12.30 – USD – Unemployment Claims; Forecast at 3,600k against previous of 3,283k
Source : ETFWorld.co.uk