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UK Services PMI in the spotlight this morning

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The FTSE 100 has opened marginally up this morning after a mixed session in Asia overnight and no US market lead following yesterday’s Independence day holiday.

The UK Services PMI could add some interest this morning. Spreadex Analyst Connor Campbell commented “Both the manufacturing and construction readings fell faster than expected in June, suggesting the month’s election uncertainty had a material impact on confidence.”

“Of the 3 PMIs the services figures is easily the most important, and will give the clearest indication of how the UK performed in Q2; it’s frustrating, then, that analysts are forecasting a fall from 53.8 to 53.5, continuing the siphoning off of energy from the 55.8 reading that had opened the quarter.”

Accendo Markets Analyst, Mike van Dulken added “Geopolitics is very much back to the fore after North Korea’s missile launch and the Qatar crisis still rumbling on.”

“Watch the GBP and EUR having found a floor as the USD bounce eases. This could hinder the FTSE and DAX should their respective currencies claw back some lost ground.”

The dollar is mildly higher against many of its major pairings this morning. ADS Securities Analyst, Konstantinos Anthis suggested “traders will remain focused on the dollar today ahead of the FOMC minutes’ release that is expected to shed more light on the Fed’s plans to start unwinding their balance sheet.”

“Should the FOMC minutes indicate that the Fed is indeed close to normalizing their policy further then the Dollar will trade with a positive bias towards Friday’s Non-Farm Payroll report.”

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This article does not constitute investment advice. Make sure you do your own research or consult a professional advisor.

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