Manufacturing PMIs disappoint once more but services is what central banks are obsessed with

We may be seeing a bit of a trading lull at the start of the week with tomorrow’s US bank holiday tempting many into an extended weekend.

The economic calendar looks busy but with a large portion being PMI revisions, that doesn’t necessarily equate to an abundance of trading activity. The revisions are often small and don’t really move the needle in terms of expectations for the economy and, at this moment, interest rates.

And then there’s the fact that manufacturing being deep in contraction territory is nothing new and what revisions we did see doesn’t really change that. Even as far as prices are concerned, central banks at this stage are far more concerned with what’s happening in services than manufacturing so even that providing welcome disinflationary pressure won’t be enough.

Is the bitcoin consolidation a bullish signal?

Bitcoin is continuing to fluctuate largely between $30,000-$31,000 in a manner that may feel encouraging to the crypto community after such a powerful rally a couple of weeks ago. While it hasn’t managed to capitalize any further, that it hasn’t given back a portion of those gains gives the impression that traders think there’s more to come and that this is merely a period of consolidation amid a bigger move. Time will tell whether that turns out to be the case and news flow may have a big part to play in the outcome but what we’ve seen so far is encouraging.

For a look at all of today’s economic events, check out our economic calendar: www.marketpulse.com/economic-events/

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