A think tank says Rishi Sunak risks breaking Treasury rules on borrowing if he is to boost public spending.
US ISM Non-Manufacturing PMI Overview The Institute of Supply Management (ISM) will release the Non-Manufacturing Purchasing Managers' Index (PMI), also known as the ISM Services PMI at 1400 GMT and the forecast for June stands at 58.3 points as compared to previous month's reading of 58.6. Deviation impact on USD/JPY Readers can find FX Street's proprietary deviation impact map of the event below. As observed the reaction in case of a relative deviation of +1.30 or -1.1 is likely to be in the range of 20-25 pips during the first 15-minutes and could stretch to around 45-50 pips in the subsequent 4-hours. How could affect USD/JPY? Currently holding with daily gains, comfortably above mid-110.00s, a better-than-expected print could assist the pair to aim back towards reclaiming the 111.00 handle before eventually darting towards May monthly tops resistance near the 111.40 region. Alternatively, the reaction to a negative reading is expected to remain muted ahead of today's important release of the latest FOMC meeting minutes. Hence, any immediate downside is likely to find support near the 110.45 region, which if broken could accelerate the fall further towards the key 110.00 psychological mark en-route 55-day SMA support near the 109.85-80 region. Key Notes • ADP + ISM Non-Manufacturing PMI Preview: last minute hints could raise expectations for Friday's NFP • USD/JPY spikes to fresh session tops, 111.00 mark back on sight • US Dollar hits over 1-week low risks breaking below 94.00 handle About the US ISM non-manufacturing PMI The ISM Non-Manufacturing Index released by the Institute for Supply Management (ISM) shows business conditions in the US non-manufacturing sector. It is worth noting that services constitute the largest sector of the US economy and result above 50 should be seen as supportive for the USD.