Yesterday, US Markit PMI service data came in higher at 51.9 from 51.0 in August. The increase was good news on the face of it, following some shaky service sector feedback of late. However, when looking at the composite index, the US growth is pointed out at around 1% for the quarter which is relatively weak in US terms and certainly dampens expectations for an interest rate hike this year. US consumer confidence rose sharply to 104.1 from 101.80 which, again, is a good number but overall the underlying economic growth is just not convincing enough and the USD weakened against the pound.
US data and FED members talks expected today
YToday, we have further feedback with US durable goods data which is anticipated to come in slightly weaker. In addition, Federal Reserve Chair Janet Yellen is speaking today and the market will be looking for clues from Yellen for future policy moves. We have also three other FOMC members speaking today and their comments will be of interest, especially given the divide in opinion which was evident at last week’s policy meeting.
All eyes on Mario Draghi
The ECB president, Mario Draghi, will also speak today and again the market will be looking for future clues on policy and any post Brexit vote feedback.