Today’s upbeat UK services PMI data has revealed that macro activity in the nation remained well supported for November, particularly after the manufacturing PMI numbers showed an unexpected improvement earlier this week. However, the focus among market participants is likely to remain on the Chancellor’s autumn statement later today to gain a preview into the government’s budget for the coming year.

In the Euro zone, today’s poor services PMI reports have put further pressure on the Euro and shifted market attention to Euro zone retail sales data to gauge the health of consumer morale in the region. Across the Atlantic, the ISM non-manufacturing PMI and ADP employment reports scheduled later today will hog the limelight in the latter half of the session.

Pound Sterling – UK Markets

Data just out showed that services PMI in the UK rose more than expected for November after two straight months of easing. Today’s services PMI update has offered further evidence of firmness in the nation’s macro activity for November, especially considering this week’s manufacturing PMI report which indicated that industrial activity in Britain remained supported by robust domestic demand. Meanwhile, the Pound is trading in a tight range against the greenback while gaining traction against the Euro this morning.

Later today, market participants will eye the autumn forecast statement by the UK Chancellor, George Osborne. Investors will further scrutinise his comments for more clarity on the government’s high level of public debt, especially amid prospects that the Chancellor might not meet his fiscal reduction targets this year due to a low pickup in tax receipts. Sterling investors will also keep a tab on the BoE’s policy meeting tomorrow for further direction.

US Dollar – US Markets

The greenback is trading in a tight range against its major counterparts this morning ahead of crucial US macro reports scheduled later today. The ADP report is expected to show that the number of job additions in the nation’s private sector remained above 200K for a sixth straight month for November. Against the backdrop of the US Fed Vice Chairman, Stanley Fischer’s hawkish comments yesterday, the ADP report will gain considerable market attention. Additionally, the report will be crucial to get an insight into the nation’s labour market conditions for November ahead of the official labour market report due this Friday. Separately, the ISM is scheduled to release its non-manufacturing PMI survey for November in the US today. Considering that the ISM manufacturing PMI reading beat market estimates for November, today’s numbers will be eyed to gauge the health of the services sector in the nation.

The US Dollar gained ground against the majors in yesterday’s trading session, supported by data showing a more than anticipated rebound in US construction spending for October.

Euro – European Markets

Markit revealed its revised services PMI readings across key European nations for November earlier today. The revised readings confirmed that the German services sector expanded at a slower pace and French non-manufacturing activity continued to contract for a third straight month. The Euro zone services PMI reading was revised downwards akin to its manufacturing counterpart, leading the Euro to trade under pressure against the majors this morning. Going forward, investors will eye today’s retail sales data in the Euro zone which is anticipated to show a rebound in monthly retail trade for October.

Yesterday, the annual producer price inflation data showed that factory gate prices in the Euro zone were in line with market estimates. Amid prospects of deflation in the Euro zone and ongoing concerns about the adverse impact of low energy prices on the region’s inflation, traders will keep a tab on the ECB’s policy meeting tomorrow. The comments from the ECB Chief in the post-meeting conference will be scrutinised to gauge the impact of the central bank’s earlier stimulus measures and prospects of further easing measures in the Euro bloc.

Other Currencies – Highlights

The GDP data released earlier today showed that the Swiss economy grew more than expected for the third quarter, led by an improvement in exports and an increase in public and private sector spending. Amid today’s upbeat GDP numbers, market participants will now eye the Swiss National Bank’s quarterly policy review scheduled later this month to gain a better insight into the nation’s economic trend for 2014. Meanwhile, the Swiss Franc has shown little reaction to today’s encouraging GDP numbers and remained range bound against the greenback. Going forward, investors will eye crucial ADP employment and ISM non-manufacturing PMI reports due later today in the US for further direction to the Swiss Franc against the US Dollar.

Yesterday, the Swiss Franc lost ground against the greenback after the US Fed Vice Chairman, Stanley Fischer, resorted to a slightly hawkish tone in his speech. Additionally, upbeat US construction spending data for October extended gains in the US Dollar.