- U.K. services PMI falls short at 60.0 vs. 62.1 estimate
- Euro zone retail sales down by 0.2%
- U.S. ADP non-farm employment change, trade balance coming up
- BOC to keep interest rates unchanged at 1.00%
- U.S. ISM non-manufacturing PMI may hold steady at 55.4
The British pound was weighed down by weaker than expected services PMI in today’s London trading session, as the index slipped from 62.5 to 60.0, lower than the estimated 62.1 reading. GBP/USD retreated from the 1.6400 area to a low of 1.6329 after the release then bounced back above the 1.6350 minor psychological support instantly.
As for the euro zone, data was mostly weaker than expected, with the Italian non-manufacturing PMI reflecting industry contraction for November. Retail sales also fell short of expectations and showed a 0.2% decline, yet EUR/USD managed to hold on to the 1.3600 handle.
In the next few hours, we’ll see the release of the U.S. ADP non-farm employment change figure. Private payrolls could pick up by 172K, higher than the previous 130K increase, which might lead to positioning ahead of Friday’s NFP release. Also due today are Canadian and U.S. trade balance data.
USD/CAD might be in for a volatile New York trading session, with the BOC set to announce its interest rate decision at 4:00 pm GMT. No rate changes are expected, as traders are likely to keep close tabs on the accompanying statement by Governor Poloz.
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