Rate focus shifts to the East

UK Services data is being forecasted to remain in expansionary levels today, but only just, teetering just above the 50 level.

Previous Day's Market Highlights

  • On Friday, data revealed the UK construction industry contracted once again, with output falling for the third month in a row. IHS Markit posted a Construction PMI score of 45.3, against a forecast of 46.
    The sector is continuing to feel the effects of the ever present challenging economic conditions and domestic political uncertainty. 
  • US Non-Farm Payroll was recorded at 164k, in line with estimates, which is the 106th consecutive month of jobs gains in the US economy. Unemployment rate remains unchanged at 3.7 percent and average earnings fell from 3.4 percent previous, to 3.2 percent.
  • Sterling remains under the cosh, trading close to the low levels last seen in early 2017.
  • Simmering US – China trade tensions are once again threatening to spark into a full out currency war. Trump's latest stance to impose new tariffs has led to retaliation, with Beijing lowering the Yuan on Monday.
Currency Pairing 08:00 Today Vs 08:00 Yesterday Four-Week High Four-Week Low % Change
GBP/EUR 1.0878 1.1246 1.0875 3.30%
GBP/USD 1.2110 1.2578 1.2079 3.97%
EUR/USD 1.1130 1.1285 1.1026 2.30%
GBP/AUD 1.7895 1.8041 1.7560 2.67%
GBP/NZD 1.8593 1.8960 1.8278 3.60%
GBP/CAD 1.6025 1.6438 1.5959 2.91%

Today's Market Highlights

  • The am session brings a string of Eurozone services PMI data from 8:30 am to 9 am. Expansionary figures are being forecasted, however recent downturns in Manufacturing has led to some anxiety ahead of the figures.
  • UK Services data is being forecasted to remain in expansionary levels today...but only just, teetering just above the 50 level. It will be a welcomed sign if it can remain in this territory and meet the expectation of 50.4.
  • Across the pond, US ISM Non-Manufacturing PMI will be released in the afternoon session, where progression from last months 55.1 (two-year low) is being forecasted (55.5). Activity growth has slowed over the past 12 months and this edge up will provide a welcomed sign, especially as trade tensions begin to ramp up again.

Today's Economic Calendar

Time Currency Release Consensus Previous
8:30am EUR Eurozone Services PMI
9:30am GBP UK Services PMI (Jul) 50.4 50.2
3:00pm USD US ISM Non-Manufacturing PMI 55.5 55.1
11:45pm NZD New Zealand Labour Market Report Q2