The Weekly Wrap – Dollar Gives Up Ground as Economic Data and Powell Question Divergence
Out of the U.S
It was quiet start to the week.
The markets had to wait until Wednesday for June’s prelim private sector PMI numbers.
It was a mixed bag for the markets. While manufacturing sector activity picked up, the pace of service sector growth slowed in June.
The services PMI fell from 70.4 to 64.8, while the manufacturing PMI rose from 62.1 to 62.6.
On Thursday, core durable goods and jobless claims figures disappointed. In the week ending 18th June, initial jobless claims saw a modest decline from 418k to 411k.
Core durable goods orders failed to impress, rising by just 0.3%. Economists had forecast a 0.8% rise off the back of a 1.7% jump in April.
At the end of the week, the focus then shifted to inflation and personal spending figures.
In May, personal spending stalled, falling short of a forecasted 0.4% rise. In April, spending had risen by 0.9%.
Inflationary pressures were on the rise, however, aligned with market…