
USD’s rally takes a pause, while riskier assets are modestly rising.
In August, the British services sector speeded up more than anticipated, thus offsetting a deceleration for manufacturing as well as construction businesses, although Brexit fears are affecting investment plans for the year ahead.
In August, the IHS Markit/CIPS Purchasing Managers' Index jumped to 54.3 from July’s outcome of 53.5, thus beating all estimates in a Reuters survey of market experts and soaring further above the 50-mark, which stands for surge.
According to the PMI, there has been a repeat of the UK economy's 0.4% quarterly surge ate observed for the three months to June.
The British economy has speeded down since the June 2016 Brexit vote.
Nevertheless, in August, the Bank of England had interest rates lifted for the second time for ten years because of worries that labor shortages as well as other capacity constraints are going to prevent inflation getting back to its 2% objective in the short term.
In the services sector, employment intentions rallied to a six-month maximum, although confidence for the year ahead dived to its lowest value since March because businesses told that Brexit uncertainty had made customers less willing to invest.
By the way, UK Prime Minister Theresa May is expected to agree the terms of the country’s future relationship with the EU, which is less than seven months before Great Britain leaves the trading bloc.
Financial services turned out to be the key contributors to the surge. UK businesses posted softer demand from retailers.
A great number of clients are heavily affected by inflation, which has been ascending faster than their salaries for much of the previous decade.
Businesses in the PMI poll posted paying higher wages to recruit hard-to-find employees. Moreover, they have reduced employee turnover, which was restricting their ability to have some projects completed.
USD’s rally takes a pause, while riskier assets are modestly rising.
Poor US data, slow vaccine distribution, rising virus cases worsened the market sentiment and underpinned safe-haven currencies like the USD, and JPY.
Joe Biden is going to unveil a Covid-19 relief package of about $2 trillion. After this announcement, the 10-year Treasury yield rose, adding support for the USD.
The market optimism waned amid stricter restrictions to control rising coronavirus infections. S&P 500 and Nasdaq dropped from the all-time highs, while the USD jumped higher.
S&P 500 skyrocketed to the all-time high on optimism that Biden’s fiscal stimulus will support economic growth and boost corporate earnings.
PMI reports from the EU, the UK, and the USA will be released during the day!
FBS maintains a record of your data to run this website. By pressing the “Accept” button, you agree to our Privacy policy.
Your request is accepted
Manager will call your number
Next callback request for this phone number
will be available in {time}
If you have an urgent issue please contact us via
Live chat
Internal error. Please try again later
Don’t waste your time – keep track of how NFP affects the US dollar and profit!
Beginner Forex book will guide you through the world of trading.
We've emailed a special link to your e-mail.
Click the link to confirm your address and get Beginner Forex book for free.