Service Sector PMIs Put the EUR, GBP and Greenback in Focus

With sentiment towards the global economy deteriorating, today’s service sector PMIs need to hold up for the markets to avoid a meltdown…
Bob Mason
Forex Markets Currency Trading Concept.

Earlier in the Day:

It was another quiet day on the economic calendar through the Asian session this morning.

Japan service sector PMI and Australia trade data provided direction through the early part of the day.

Outside of the stats, the markets also responded to weak overnight economic data out of the U.S that refueled concerns over the state of the global economy.

For the Japanese Yen

The finalized September service sector PMI came in at 52.7, which was in line with forecasts, whilst down from a prelim 53.3. According to the finalized Markit survey,

  • While new orders grew at the slowest pace this year, firms reported continuingly strong order book volumes in September.
  • New export sales growth was the strongest since Jul-2018.
  • Employment growth was marginally higher than August’s 18-month low.
  • Business confidence rose to a 3-month high supported by expansion plans and stronger demand.

The Japanese Yen moved from ¥107.053 to ¥106.999 upon release of the figures. At the time of writing, the Japanese Yen was up by 0.07% to ¥107.11 against the U.S Dollar.

For the Aussie Dollar

The trade surplus narrowed from a revised A$7.253bn to A$5.926bn in August, a decrease of A$1,327m from July 2019. Economists had forecasted a narrowing to A$6.00bn.

According to the ABS,

  • Goods and services credits fell by A$1,464m (3%) to A$40,982m.
    • Non-rural goods exports fell A$971m (4%), with non-monetary gold credits falling by A$601m (22%).
    • Rural goods exports rose A$51m (1%), with the net exports of goods under merchanting rising by A$3m (25%).
    • Services credits rose A$53m (1%).
  • Goods and services debits fell A$137m to A$35,056m.
    • Intermediate and other merchandise goods imports fell A$424m (4%).
    • The imports of capital goods fell by A$115m (2%) and consumption goods by A$76m (1%).
    • Non-monetary gold imports rose A$313m (40%), with services debits rising A$164m (2%).

The Aussie Dollar moved from $0.067111 to $0.67093 upon release of the figures. At the time of writing, the Aussie Dollar was up by 0.07% to $0.6712.


At the time of writing, the Kiwi Dollar was down by 0.03% to $0.6267.

The Day Ahead:

For the EUR

It’s a busy day ahead on the economic calendar. Service sector PMI numbers are due out of Spain and Italy, along with Eurozone retail sales figures.

Finalized French, German, and Eurozone service sector and composite PMIs are also due out.

Barring deviation from prelim, we would expect the market focus to be on the Eurozone services PMI and composite and retail sales figures.

Outside of the numbers, geopolitical risk will continue to influence.

At the time of writing, the EUR was up by 0.01% to $1.0960.

For the Pound

It’s a relatively busy day ahead on the data front. September’s services PMI and composite are due out later this morning.

Service sector activity is a key contributor to the UK economy. Any further slowdown in service sector activity will add further pressure on the Pound.

It will ultimately continue to boil down to UK politics and Brexit on the day, however.

At the time of writing, the Pound was down by 0.04% to $1.2298.

Across the Pond

It’s a busy day ahead on the economic calendar. Key stats include the markets’ preferred ISM non-manufacturing ISM figures, factory orders, and weekly initial jobless claims numbers.

Of less influence on the day are finalized services and composite PMI numbers.

On the political front, any impeachment talk and any updates on trade will also impact. With a week to go before trade talks are set to resume, any negative chatter would weigh on the Greenback. Market jitters over the U.S economy will make the Dollar all the more sensitive.

The Dollar Spot Index was down by 0.01% to 99.006 at the time of writing.

For the Loonie

It’s another quiet day on the economic calendar. There are no material stats due out of Canada later today, leaving the Loonie in the hands crude oil prices and sentiment towards impending trade talks.

The Loonie was up by 0.02% at C$1.3323, against the U.S Dollar, at the time of writing.

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.