It was a busy day for economic data yesterday as a number of high tier data was released. The tertiary sector of both the US and UK were in the spotlight as services PMI were released to and from the pond. Firstly, UK services PMI gave the Pound a boost yesterday morning. The data showed that the service sector grew at its fastest pace for 17 months in December at 56.2. Sterling gains however were capped as inflationary pressure in the sector continues. The US followed suit, with their ISM non-manufacturing PMI posting a better than expected 57.2.
In other news, the States released their ADP non-farm employment change yesterday afternoon. The ADP gives markets a good insight into what Friday’s all-important non-farm reading could be. Yesterday’s ADP posted a worse than expected 153k against a forecast of 171k. Although ADP job gains are slightly below average in December the US labour market is still healthy and if Friday’s non-farm can imitate yesterday’s reading the Dollar trend will still remain relatively bullish.
The first Friday of the month as always has us all looking to the release of the US labour data. The Non-farm employment figure is going to be closely scrutinised to see if another solid figure will be posted for December. The unemployment rate is also scheduled for release and is forecast to increase from 4.6% to a slightly worse 4.7%.
Have a good day.