Daily Alert – Tuesday 24th October 2023: Today’s PMIs tell an interesting story
Today’s PMI readings from the US, Germany, eurozone and the UK show the difference between the US economy and, frankly, everyone else.
The US reported two PMIs: Manufacturing and Services. Both beat expectations to the upside and, critically, were greater than 50, showing the expectation of industry expansion.
It was a different story in Germany, the eurozone and the UK. These territories report an additional PMI: Composite. So that’s a total of nine PMIs. Seven of them missed to the downside and ALL OF THEM are less than 50, indicating expected industry contraction. The worst reading was German Manufacturing PMI, coming in at 40.7, a level only seen twice since the great financial crisis of 2008. Manufacturing is, of course, what the Germans do so well. So that’s a problem.
The charts are a bit more favourable for me today and I will be looking closely at EURUSD, GBPUSD and WTI later tonight.
I will be back on Thursday, after the European Central Bank’s rate announcement.
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