May PMIs and FX Update

Investors are pivoting toward May PMIs to gauge relative economic resilience in the US, UK, and Eurozone. Meanwhile, a surprise jump in Australian unemployment suggests the RBA will pause rate hikes, weighing on the AUD.

Key Takeaways

• 1.Market focus is shifting from geopolitical risks to fundamental data, specifically the preliminary May PMIs for the US, Eurozone, and UK.
• 2.Australian labor market data significantly underperformed, with an employment drop of 18.6k and unemployment rising to a 4.5-year high of 4.5%.
• 3.The Eurozone economy is expected to show continued contraction in PMIs, potentially leading to further EUR downside against the USD and GBP.

Table of Contents

• Asia overnight
• May PMIs and FX: no winners, one loser
• AUD: cracks beginning to appear?
• Introducing RMA!
• Open trade recommendations
• Key events
• FX Research advanced tools
• Red Mount Analytics
• Our new interactive data website features
• Global Markets Research contact details
• Certification
• Foreign exchange disclosure statement to clients of CACIB
• Additional recommendation obligations
• Valuation and methodology
• MiFID II contact details
• Disclaimer

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