Yesterday was relatively light in terms of data with the only two main releases being UK construction PMI and the ADP non-farm employment change from the States. Firstly, construction PMI disappointed in the UK early yesterday, missing expectations of 55.2 and posting a 10 month low of 54.2. Construction firms were struggling for momentum. This was previously seen with manufacturing on Tuesday falling to its worst monthly reading in 3 years. With increased economic uncertainty holding back the demand for new orders, this could be the case throughout Q1. Although Sterling did claw back the losses against the Greenback and the Euro seen after the Brexit debate hit the headlines over a week ago. Today’s Service PMI reading today could see further support for the Pound if a good figure is posted after the disappointing PMI readings this week.
Across the pond, ADP Non-Farm Employment change exceeded economists’ consensus registering a 214k. This private reading has been relatively accurate recently, suggesting Friday’s all important Non-Farm figure could once again post north of 200k and exceed expectations and could see the dollar bulls out again.
The biggest day in the calendar this week for the UK economy as we have the UK services PMI released. The service sector makes up roughly 70% of the UK’s economy and therefore this figure will be heavily scrutinised. Also due to hit the wires is the ISM Non-Manufacturing index.