The softer US employment report has left markets speculating about the timing of a US rate hike (again) although it is unwise to place too much emphasis on a single data item. Lockhart of the Fed was sounding confident of a Q3 rate increase.
Euro area service sector sentiment is due and is expected to indicate an accelerated pace of economic expansion. We believe that there is a cyclical upturn underway in the Euro area, although service sector sentiment data may not be the most reliable signal of that.
The Reserve Bank of Australia left interest rates unchanged - there had been speculation of a further easing. We think that the rate cut will be next month as the RBA assesses the full effects of the blend of policies (regulatory and monetary) that it has undertaken.
Kocherlakota of the Fed is on the agenda today, and consumer credit numbers are also due out of the US. These may be worthy of some attention as credit is a form of dissaving, and the US consumers apparent inclination to save has been something of a focus.