According to analysts from Wells Fargo, economic data around the globe continues to show a challenging environment but the PMI reading suggests that manufacturing deterioration eased somewhat. Key Quotes: “Global economic data have continued to show a challenging environment for economic growth. Last week, the Bank of Japan surprised the markets with negative rates and there is now talk even in the United States that if financial conditions tighten too much Fed officials would not discount using such a tool within the U.S. economy. We do not anticipate such an eventuality, however.” “Better PMI readings taken together seem to suggest that the global manufacturing deterioration has, at least for now, eased somewhat. This is a good starting point for global economic growth but it is probably not enough for markets to start calming down.” “Although it seems that markets have concluded that the drop in oil prices is “bad” for the global economy the fact of the matter is that, perhaps, it is one of the only positive developments for demand across the world, as the global economy struggles with complementing expansive monetary policies with tighter fiscal policies. The fact that the drop in oil prices is helping consumers across the world should not be taken lightly and should make markets wonder what would have been the state of the global consumer had oil prices remained north of $100 per barrel.” For more information, read our latest forex news.