The UK has seen some good data being released of late and with the upcoming BOE rate decision on Thursday, all eyes will be on the Services PMI which is expected to come in at 47.4, should it beat expectations, we would see the pound rise further as markets begin to believe that the Brexit wasn’t as severe as everybody had expected. Worse than expected figures will see the pound tumble as positional play are made in anticipation of tomorrows vote.
The USD has been punished of late and with the upcoming NFP data at the end of the week, traders will be licking their chops at today’s data, with the ADP Non-Farm figure, a prelude to Friday’s big number, expected at 171K and the ISM figure, expected at 56. Should these number beat expectations, we would see the USD bulls rejoice as they claim back some the recent ground they lost, while worse than expected data will see the mighty bears continue their bearish ways and drive the USD index even lower.
With Crude oil taking on several big hits of late and trading back around the 40 USD mark, bulls will be hoping today's Inventory data, expected at -1.6M, can give them a boost and trigger the beginning of correction.
Today’s key economic data is as follows:
- Services PMI expected at 47.4
- ADP Non-Farm Employment Change expected at 171K
- ISM Non-Manufacturing PMI expected at 56
- Retail Sales m/m expected at 0.3%
- Crude Oil Inventories expected at -1.6M