Data from several Asian nations this morning revealed a stark downturn in manufacturing across the East. With similar downturns across Europe and the Americas, several analysts view the figures as in line with expectations, despite coming in below market forecasts; though the data is hardly worth celebrating.
China published its Manufacturing PMI figures at 2:00 GMT this morning, revealing a minor short-fall in market expectations, though the impact was barely felt. Japan’s Tankan manufacturing data also fell short of forecasts, which was somewhat more surprising given the recent data on inflationary growth, a better-than-forecast retail sales report, and rising monthly industrial output.
Analysts have taken the news as a sign that growth in other parts of the globe may also see a downturn. This morning’s Chinese data suggests that fuel demand may wane in the months ahead; driving oil prices lower over the short- to mid-term. With manufacturing in decline, traders may anticipate more risk averse behavior throughout the next few months, leading to a stabilizing in value for safe haven currencies like the USD, JPY and CHF.
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