ECB meeting is on the agenda. Will the EUR get weaker?
British pound rallies backed by UK services
On Tuesday, the UK currency managed to gain, hitting the trading session's peak, underpinned by the news that business activity in the UK leading services sector soared stronger than anticipated in May.
The currency pair GBP/USD leapt by 0.48% coming up with a reading of 1.3375 in contrast with the previous outcome of 1.3332.
The UK currency soared in the face of indications of the revival of the UK economy after a recent slowdown provoked by bad weather. Apparently, the new data renewed predictions that the Bank of England could have the interest rate lifted in August.
In May, the index of business activity in the services sector of the United Kingdom edged up hitting 54.0 in contrast with April’s reading of 52.8. Market experts predicted that the value of this index would account for about 52.9. By the way the reading of this index above 50 stands for surge.
Evidently, the improvement in the situation in the services sector happens to be another proof that the British economy is already reviving in the second quarter. Nevertheless, representatives of the companies stressed that uncertainty regarding Brexit still appears to be a major factor, constraining the decisions of customers.
As follows from the report, employment in the services sector of Great Britain displayed the second-lowest surge rate since March the previous year.
The British pound tacked on versus the common currency. The currency pair EUR/GBP went down by 0.42% being worth 0.8747 versus the reading of 0.8781 before the report was uncovered.
Uncovered on Tuesday, data disclosed that business activity in the euro zone speeded down in May. As a matter of fact, the final value of composite PMI index went down to a low of 18 months - 54.1 after the reading of 55.1, recorded in April.
The news that opposition lawmakers plan to stop Boris Johnson to leave the European Union without a deal increased the political uncertainties in the UK.
The level of non-farm payrolls (NFP), also known as non-farm employment change will be published on September 6, at 15:30 MT time.
Pay attention to the FOMC meeting, where the rate cut is expected. Also, it is recommended to keep an eye on the oil prices, updates on trade talks between the USD and China and, of course, Brexit.
The retail sales for the US in focus today
During today's Turkish central bank meeting, the market anticipated a rate cut between 200-300 pips.