Today’s market is filled with economic indicators related to the non-manufacturing (service) sector. Final Non-Manufacturing PMI figures for November will be released for France, Germany, the Eurozone, the UK, and the US. Additionally, Spain and Italy will also release their Non-Manufacturing PMI figures for November. In the US, the ISM Non-Manufacturing Business Activity Index for November will also be announced.
While market reactions to non-manufacturing data may be limited due to the timing of manufacturing data releases, the non-manufacturing sector carries significant weight in the overall economy, making it essential to monitor closely.
For the dollar, the focus will be on US indicators. Market expectations for the US ISM Non-Manufacturing Business Activity Index in November are for an increase to 52.3 from October’s 51.8. Within the index, the employment component will be closely watched, with market expectations of an increase to 51.4 from the previous 50.2. On the other hand, the US JOLTS Job Openings for October are expected to decrease to 9.3 million from the previous 9.553 million.
Yesterday, the dollar saw some buying interest. Despite the recent trend of a weaker dollar since November, with the upcoming key event of the US employment report, position adjustments are more likely to occur during this time. However, following today’s ISM Non-Manufacturing Business Activity Index, the US ADP Employment Report will be released tomorrow, and on Thursday, various US employment-related indicators will be announced, making the dollar market sensitive and prone to fluctuations.
Other scheduled economic indicators include Eurozone Producer Price Index for October, South Africa’s Real GDP for the third quarter, Brazil’s Real GDP for the third quarter, and during European hours, the ECB’s Consumer Inflation Expectation for October will be released. While the one-year expectation is expected to decrease from 4.0% to 3.8%, the three-year expectation is expected to remain at 2.5%.
In terms of speaking events, Bowman, an FRB Board Member, is scheduled to speak about financial system development later in the NY session.
Yesterday saw some buying interest in the USD, but the focus remains on selling USD. Pay attention to the USD’s movement after the release of the US JOLTS Job Openings and the ISM Non-Manufacturing Business Activity Index.
