Service sector data dominated yesterday’s markets as both PMI’s were released from the UK and US. Both countries are service led economies with the tertiary sector contributing to over 70% of growth in both the UK and US. Firstly, the closely watched services PMI from the UK posted a slightly worse than expected 53.7. Expansion in the sector remained subdued as business confidence continues in the doldrums due to concerns about the global economy and EU referendum disrupting Consumer Confidence.
Across the pond, the US released their version of services PMI in the form of Non-Manufacturing PMI. ISM Non-Manufacturing in the US, exceeded economist’ consensus, registering a 54.5. Anything above 50 indicates expansion and below contraction. The Greenback strengthened throughout the day yesterday, rising over one percent against the Pound, and 0.9% versus the Euro.
We have further high tier data released from the US today, as the Crude Oil Inventories will be posted. Crude oil gauges the amount of stored oil by companies over the past week. A higher number seen could impact the Dollar to the downside. Fed minutes are released later this evening, where the dovish tone is expected to be seen further when released.