Bullish Services PMI unable to boost the Pound

Yesterday’s markets

5th May 2017

  • GBP - Services PMI: 55.8
  • CAD - Trade Balance: -0.1B
  • EUR - ECB President Draghi Speaks

UK Services PMI, which accounts for up 80% of the UK GDP, posted higher than expected at 55.8, yesterday. New work and employment levels increased at the fastest pace this year, with job creations hitting a four-month high. The figure has posted above the 50 mark for the past nine months, indicating expansion in the sector and another bullish figure since Brexit. However, yesterday’s better than expected reading did not translate to a change in Sterling.

The House of Representatives voted on Donald Trump’s new and improved healthcare bill yesterday evening. One of Trump’s campaign promises was to repeal Obamacare. However, he had trouble getting the bill passed through house during his first four months in office, with it being dramatically cancelled at the last minute. The bill passed through the House of Representatives last night, however, there is still a lot more work to be done. 

Today’s markets

4th May 2017

  • CAD - Employment Change
  • USD - Average Hourly Earnings m/m
  • USD - Fed Chair Yellen Speaks

Today is arguably the biggest day of the week as we have the all-important non-farm payroll figure scheduled for release. The figure is expected to increase to 194K, from last months’ bearish reading of 98K.

Also from the States, we have the headline unemployment rate which is forecasted to show a slight uptick back to 4.6%.

Finally, Fed Chair Janet Yellen is scheduled to speak at Brown University. Markets will be looking for anything she says untoward or any mention of the FOMC’s interest rates plans.