The U.S. dollar closed with modest gains ending the month of September on a high note. Solid economic data continued to suggest that the U.S. economy was on track to keeping the 4% GDP growth. The euro continued its decline led by concerns from Italy.
The Italian government passed a budget with deficit higher than the EU’s limit. This is expected to cause some friction between the governments in Rome and Brussels.
The markets open to a new trading month. Data from Japan showed that the Tankan manufacturing index fell to 19 while the non-manufacturing index fell to 22.
The European trading session will see the release of the monthly manufacturing and services PMI numbers. Activity in the sectors is expected to remain broadly unchanged from the previous month.
The monthly unemployment rate from the EU is expected to show a decline to 8.1% from 8.2% previously.
The UK will be releasing its monthly manufacturing PMI for September. The median forecasts put the index to ease to 52.5 from 52.8 previously.
In the NY trading session, data will start with Markit’s final manufacturing PMI followed by the ISM’s manufacturing PMI figures.
Economists forecast that the ISM activity in the manufacturing sector eased to 60.3, down from 61.3 just the month before.
