Aussie rallies, pound falls on Australia growth and Brexit fears

1 June, AtoZForex, Lagos – The Aussie rallied on Australia growth at four-year high. While the pound fell after recent Brexit poll result. Just a few weeks after surveys showed a comfortable lead for the “in” side, another recently conducted poll now depicts that the Brexit supporters are gaining ground, surpassing the stay side. According to two surveys conducted over the weekend, the “out” side is rapidly gaining ground as the June 23 date for the European Union referendum draws closer. The pound fell sharply across board as looming fears of a Brexit scared the markets.

Oil prices dipped sharply towards the closing hours of trading yesterday to end the day lower. The fall was triggered by remarks from UAE Oil Minister Suhail bin Mohammed al-Mazroui ahead of the Organization of Oil Exporting Countries (OPEC) meeting tomorrow. The oil minister said he was happy with the recent reactions in the oil market as prices have been notching higher. On aggregate, oil closed May on a high. Posting a fourth consecutive month of gains.

Australia growth at four-year high

The day has already commenced with strong moves from the Australian dollar after the country’s quarterly GDP showed a stronger growth than expected. Expanding at the fastest pace in four years driven a 4.4% jump in exports, which added 1 percentage point to growth; and a 0.7% increase in household spending.

UK manufacturing PMI (8:30 A.M GMT)

The previous data report showed UK Manufacturing PMI at 49.2 in April. This was near-stagnant trends in output and new orders as price deflationary pressures eased. The index fell below the critical no-change mark of 50.0 for the first time since March 2013. At 49.2, from a downwardly revised reading of 50.7 in March, the headline index was dragged lower by lacklustre trends in production and new orders and declines in both employment and stocks of purchases. The latest release is forecast to come at 49.6, still below the positive benchmark of 50. This could further weight on the already weak pound if we do get a disappointing report here.

US ISM Manufacturing PMI (2:00 P.M GMT)

The ISM Manufacturing PMI is forecast to come at 50.5. The report will be closely watched as Yellen reiterated on Friday that the Fed’s decision on rate hike will be highly dependent on coming data.

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