With sentiment towards the global economy deteriorating, today's service sector PMIs need to hold up for the markets to avoid a meltdown...
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.
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,
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.
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,
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.
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.
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.
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.
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.
With over 20 years of experience in the finance industry, Bob has been managing regional teams across Europe and Asia and focusing on analytics across both corporate and financial institutions. Currently he is covering developments relating to the financial markets, including currencies, commodities, alternative asset classes, and global equities.