UK Services set to show signs of strength for UK economy
5th April 2017 Market Update
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?? GBP - UK construction PMI came out in the early hours of UK trading yesterday, with the figure coming in slightly below expectation but still recorded growth in the sector.
Sterling finished lower by the end of the day, notably 0.4% against both the US dollar and euro.
Today we have services PMI out, which is expected to improve from last month’s number from 53.3 to 53.5, hopefully we’ll see some support for the pound following this.
?? EUR - Spanish unemployment change came out better than what was expected, with a total of 7,400 jobs added, over what was forecast.
Services PMI came out this morning, and was expected to come in at 56.5 but came in at 56.
?? USD - Factory orders came out today for the US, however there was no real change in the market, as the figure was in line with what was expected.
Trump reiterated his stance on the Dodd-Frank rules in front of an audience of corporate executives, outlining that ‘Regulators are running the banks’ and a ‘major haircut’ of the rules is due.
From the US today we have ADP non-farms employment change to be released in the afternoon, which is expected to fall from the previous month. Later on in the day we have ISM non-manufacturing PMI’s and the minutes from the recent FOMC Meeting.
The minutes will be looked at in finer detail, for any clues as to the Fed's position moving forward and the specific reasons for the interest rate hike three weeks ago.
9:30am - Services PMI.
1.15pm - ADP Employment Change.
3.00pm - ISM Non-Manufacturing PMI.
7.00pm – FOMC Minutes.
Our View: We expect possible Sterling strength this morning if Services PMI comes out positive. This could however be outshone if the US data comes in line, or above expectation.
As ministers travel around the world to promote UK trade, we may see some ideas of possible trade deals the UK is attempting to strike, but this is likely not going to surface overnight.
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