Summary:
- UK services PMI looks as the paramount point in today’s calendar
- Final services PMIs from European economies on the agenda as well
- Some central bank speakers being worth paying attention to
This is very likely that liquidity will get worse during afternoon hours trading owing to the Independence Day in the United States. The most important point in the calendar seems to be services PMI from the UK, and a bit less important final services PMIs from European economies (in case of Italy and Spain there were no preliminary readings, hence focus should be on them in particular).
9:30 am BST – UK services PMI: So far we have already known PMIs for manufacturing and construction and both surprised slightly to the upside. Nevertheless, it’s obvious that major attention is paid to services PMI as it may tell us the most about the performance of the UK economy during the second quarter (the prior two PMIs and their values for three months of the quarter do not imply any particular improvement in comparison to the first quarter). The reading coincides with the current technical setting on the GBPUSD giving hope for buyers that pound may witness a more long-lasting rebound in the foreseeable future. The median estimate says the index should stay unchanged at 54 points.
Final services PMIs from European economies plus preliminary ones (and the final simultaneously) from Spain (8:15 am BST) and Italy (8:45 am BST): When it comes to final readings from Germany, France and the Eurozone as a whole one may not look for any substantial revisions, but the major focus ought to be on Italian and Spanish prints. The first one is forecast to come in at 53.3 while the Spain’s indicator ought to total 56.2.
Central bankers scheduled to speak for today:
8:00 am BST – Riksbank’s Singsley
8:30 am BST – Riksbank’s Johnick
9:05 am BST – BoE’s Woods
11:55 am BST – BoE’s Saporta
2:30 am BST (Thursday) – BoJ’s Masai
4:05 am BST (Thursday) – RBA’s Heath
The EURGBP is coming back to its support zone, and today’s PMI from the UK could be critical for the future performance of the cross. Source: xStation5