Summary:
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Ivey PMI forecasted to tick slightly higher in September
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The US factory orders expected to recover in August
Just a few readings is scheduled on Thursday ahead of tomorrow’s NFP report release. Investors will be served factory orders data from the US that will be accompanied with a final revision of the durable goods reading. Simultaneously, Canadian Ivey PMI will be released therefore one may expect increased volatility on the USDCAD in the afternoon.
3:00 pm BST - US, Factory orders for August. Strong ISM readings and solid ADP employment change reading painted a rosy picture of the US economy and boosted expectations of tomorrow’s NFP report. However, one more important reading from the US will be released earlier. Factory goods orders declined 0.8% MoM in July and a recovery is expected this time. Economists surveyed by Bloomberg suggest that total value of new orders place with manufacturers will increase 2.1% MoM in August reinforcing a solid outlook on the US economy.
3:00 pm BST - Canada, Ivey PMI for September. Ivey PMI is a closely watched manufacturing sector gauge in Canada. While the index experienced quite a steep decline at the beginning of the year it has well recovered since then. This time market consensus points for an advance from 61.9 pts to 62.3 pts. As all other PMIs this gauge is survey based therefore it tends to show signs of a change in the economy earlier than hard data. However, it should be noted that the improvement in moods resulting from new NAFTA deal will probably not visible until next month.
Central bank speakers scheduled for today:
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10:30 am BST - ECB’s Nouy
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2:15 pm BST - Fed’s Quarles
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2:30 pm BST - ECB’s Nowotny
USDCAD pulled back below downward trendline and a long term support zone after receiving a boost from the new NAFTA deal. Today’s data may spur additional volatility but any bigger price movements are unlikely to occur unless readings show major deviation from expectations. Source: xStation5
