IHS Market PMI Surveys Preview: Strong numbers to boost USD and stocks

Manufacturing PMI is forecast to reach 48 in June from 39.8 while the services PMI is set to score 46.5 in June from 37.5. Equities and the dollar could rise on strong numbers, Joseph Trevisani, an analyst at FXStreet, reports.

Key quotes

“The IHS Markit PMI for manufacturing is forecast to climb to 48 in June from 39.8 in May and the April record low of 36.1 while the services PMI is predicted to be 46.5 in June following 37.5 in May and the all-time low of 26.7 in April.”

“Markets are waiting to be convinced the economic catastrophe that overtook the US economy in March and April reversed in May and that the recovery is well underway. Consumers have played their part, filling the shopping cars that went empty in April. Businesses have also responded hiring back several million workers.”

“These first June PMI numbers will tell if the May recovery has staying power. Equities and the dollar are ready to rise, they await a positive answer.”