UK Services PMI data expected to tick up

At 07:55 GMT, German Markit Services PMI (May) will be out with an expected headline number of 52.1 against 52.1 previously. After reaching a multi-year high in February at 57.3, this data has come back into its range under 56.0. German Markit PMI Composite (May) is expected to be 54.3 from a prior number of 54.3. EUR traders will be watching for the numbers to deviate from expectations and create volatility in the pairs.

At 08:00 GMT, Eurozone Markit Services PMI (May) will be out with an expected headline number of 53.9 against 53.9 previously. This figure is expected to slip back after hitting a high of 58.0 in February. Markit PMI Composite (May) is expected to be 54.1 from a prior number of 54.1. EUR crosses can be impacted by this data release.

At 08:30 GMT, UK Markit Services PMI (May) is expected to come in at 53.0 from 52.8 previously. This data is continuing to decline from its 2013 high of 62.5 but it has fallen below 53.0, which was somewhat of a floor for the last 18 months. The number is expected to move back into this range above 53.0 today showing modest growth. Failure to do this will put GBP under further pressure.

At 10:00 GMT, UK MPC Member Cunliffe is due to speak at the International Derivatives Expo, in London. This event can result in moves in GBP crosses from any comments made.

At 13:45 GMT, US Markit Services PMI (May) is expected to be 55.7 against a previous number of 55.7. This data is stable at present but a miss today can create a market reaction. Markit PMI Composite (May) is expected to be 54.8 against 55.7 previously, giving up some of its recent gains after a pickup in this metric. USD pairs can be moved by this data series.

At 14:00 GMT, US ISM Non – Manufacturing PMI (May) is expected to be 57.5 against 56.8 previously. This is still in the upper range of the data releases we have seen over the past seven years but off the highs reached before the financial crisis above 65.0. The recent decline shows a slowing in purchases. USD traders will be closely watching this data release.

Tentative – GMT, Global Dairy Trade Price Index is expected to be released with a previous reading of 1.9%. A negative reading at the beginning of this month reversed the positive reading from mid April. NZD pairs can be affected by this data release.

At 17:30 GMT, German Buba President Weidmann is expected to deliver a speech titled “Reforms for a Stable Monetary Union” at the annual Hessian reception, in Brussels. EUR crosses may be affected by any comments made.