US economic activity continues to expand

This week we will have available the results of the economic and productive activity for the month of May in the United States. On the one hand, the PMI data will be presented on Thursday and, on the other hand, the non-farm payroll data on Friday.

What to expect from PMI? The data that will be released will be the one provided by the Institute for Supply Management for the last month. It is expected that this month it will remain in the line of expansion although at a slower pace. The data published by IHS Markit was 60.5 at the beginning of the month. It is expected that, the data to be known by ISM, will probably remain above 61 points but with a slight variation.

Positive results and better than expected, will strengthen the dollar against the other crosses.

The April data showed that manufacturing production was affected by a shortage of essential basic materials, an increase in the price of commodities and the difficulties of transporting products, were some of the factors.

Attention should be paid to the production data in the coming weeks, since in the face of possible restrictions in circulation due to the new variants of COVID-19, external demand will impact the indicator. The last report determined that there are still factors that influence the expansion of economic growth such as temporary closures due to lack of stock, absenteeism from work and a difficulty for the business sector to fill vacant jobs.

GBPUSD opened at 1.3833 and closed sell at 1.3815.

EURUSD started the day at 1.1891 and closed sell at 1.1862

USDCAD opened at 1.2404 and closed sell at 1.2382.

The XAUUD began the day in 1756.64 and closed buy in 1765.45