Economic data coming up in the European session
Euro area services PMI on the agenda today
Major currencies are keeping little changed to start the day, with only the kiwi being the exception as it climbs on the back of a strong NZ labour market report earlier.
The dollar traded more mixed but mostly lower yesterday, keeping with the more subdued tones post-Fed. USD/JPY in particular looks vulnerable as price tests 109.00 and the 61.8 retracement level of the April to July upswing @ 109.07.
A push below that region leaves little in the way of a sharper fall towards 108.50-60 next.
Treasury yields are steadier after the drop on Monday but offers no indication of any imminent bounce back above 1.20%. Meanwhile, US futures are more tepid following modest gains yesterday in which the S&P 500 closed at a record high again.
Keep an eye on USD/JPY and the bond market for further clues in the days ahead, before the focus shifts completely towards the US non-farm payrolls report on Friday.
0715 GMT - Spain July services, composite PMI
0745 GMT - Italy July services, composite PMI
0750 GMT - France July final services, composite PMI
0755 GMT - Germany July final services, composite PMI
0800 GMT - Eurozone July final services, composite PMI
Supply chain disruptions may have put a bit of a dampener in manufacturing activity but services activity in the euro area is seen keeping more solid last month. The final readings here should reaffirm that sentiment as business conditions keep more optimistic in the summer, with looser restrictions driving growth in key services sectors.
0830 GMT - UK July final services, composite PMI
The preliminary report can be found here. The final readings should confirm a dent in the recovery picture amid weaker demand conditions and also widespread staff shortages amid self-isolation restrictions put in effect last month.
0900 GMT - Eurozone June retail sales data
Euro area retail sales is estimated to bounce back further in June, as consumption activity is seen to be more healthy going into the summer.
1100 GMT - US MBA mortgage applications w.e. 30 July
Weekly US housing data, measures the change in number of applications for mortgages backed by the MBA during the week.
That's all for the session ahead. I wish you all the best of days to come and good luck with your trading! Stay safe out there.