Sterling dipped through key support barrier against Dollar yesterday
- GBP - Services PMI
- CAD - Trade Balance
- USD - FOMC Member Bostic Speaks
Sterling dipped through a key support barrier against the Dollar during yesterday’s afternoon trading session following weak data out of the UK. The Services PMI fell to a 20-month low, signs that the US is looking to resolve their trade dispute with China and expectations of a good Non-Farm Payroll figure out of the US.
Tensions between the US and China moved more towards a war of words than actions yesterday as Donald Trump instructed the US trade representative to consider $100bn in additional tariffs to be levied against Chinese goods. Whilst the risk of an all-out trade war is still present, Reuters has cited a senior US official claiming that the US is willing and ready to negotiate with China. However, the senior US official suggests they are ready to engage in talks only if they are serious and China are willing to provide more than hollow promises to alter their trade practices.
- CAD - Employment Change
- USD - Average Hourly Earnings m/m
- USD - Unemployment Rate
With a quiet European economic docket and no significant data out of the UK, markets will be looking towards the highly anticipated Non-Farm Payroll figure released this afternoon. The US is expected to have delivered 190k new jobs last month with analysts not predicting a repeat of last month’s blowout figure. US Average Earnings are also set to be released, with a predicted increase of 0.3% month-on-month. As a leading indicator of consumer inflation, a positive reading could provide a significant boost for the Greenback. Later today, Band of England Governor Mark Carney, will be speaking at the International Climate Risk Conference for Supervisors and Fed chair, Jerome Powell, will be speaking about the US Economic Outlook.