The dollar rose against the euro, while restoring previously lost ground against the background data for the services sector. The data of the Institute for Supply Management (ISM) non-manufacturing activity were another U.S. report showing that the U.S. economy is recovering steadily. Reported Purchasing Managers Index (PMI) for the non-production sphere of the United States in July rose to 56.0 from 52.2 in June. The July value was the highest since February. According to the forecast of the market, was expected to increase to 53.3. All major sub-indices in June were in the expansion (more than 50). Restrain the growth of the sub-index of employment in the non-manufacturing sector, which was down compared with June. All other sub-indexes rose.

Earlier, the dollar's decline was due to the release of strong data for the euro area. As shown by the final results of studies that were presented to Markit, the index of business activity in the service sector rose slightly last month, but still remained below 50, indicating a contraction in activity. According to the report, the July index of business activity in the services sector climbed to 49.8 points, compared with a preliminary reading at 49.6 and 48.3 in June. It is worth noting that many experts had expected the index to remain unchanged.

In addition, the data showed that an index based on a survey of executives in the manufacturing and services sectors, rose to 50.5 in July from 48.7 in June. This is the first reading above 50 points since January 2012, which was revised from earlier estimate last month at 50.4. The improvement was due to the production, which outweighed the slight reduction in the services sector.

Value of the pound against the dollar has increased significantly, which has helped to publish a report on Britain. According to the data, the July PMI index in the services sector rose to 60.2 from 56.9 in June, reaching its highest level since December 2006. It is worth noting that according to the average estimate of economists, the index had only grow to 57.4 points. We also add that the index is above 50.0 is for seven consecutive months, showing a continuous increase during this period. Last growth was underpinned by the rapid growth in sales volumes, as market conditions continued to strengthen.

Commenting on the latest figures, Paul Smith, senior economist at Markit said that the strong performance in the UK service sector were supported by improvements in the construction and production, and the recovery is gaining momentum, which may point to further growth throughout the summer. In addition, the economist added that despite a substantial increase in the period of one month, the forward-looking elements of the survey point to a further strengthening of the gross domestic product in the third quarter.

The yen rose significantly against the U.S. currency, which was associated with the release of Chinese data. As the results of recent studies, which were presented on Saturday, the China Association of Logistics and Purchasing (Culzean) and the Research Center service industry under the State Statistical Bureau of China, at the end of last month the index of non-manufacturing activity rose slightly, while continuing its expansion.

According to the report, in July, the index of purchasing managers in non-manufacturing sector in the country amounted to 54.1 points, 0.2 percentage points higher than the June figure. Recall that PMI - an indicator showing the level of activity in this case, the non-manufacturing sector. The indicator above 50 indicates growth in the sector, while a drop below this level indicates that there is a reduction.

We also add that PMI PMI in the non-manufacturing sector in the country has increased along with the PMI index in the manufacturing sector, which, according to previously published data, rose to 50.3 points in July from 50.1 points in June.

EUR/USD $1.3000, $1.3120, $1.3225, $1.3250, $1.3300, $1.3370

USD/JPY Y97.00, Y97.50, Y98.00, Y99.00, Y99.50, Y100.00, Y100.50

GBP/USD $1.5100, $1.5175

EUR/GBP stg0.8700

UER/CHF Chf1.2300

AUD/USD $0.8900, $0.9000, $0.9005, $0.9050

Data

00:30 Australia MI Inflation Gauge, m/m July 0.0% +0.5%

00:30 Australia MI Inflation Gauge, y/y July +2.4% +2.7%

01:30 Australia Retail sales (MoM) June +0.2% Revised From +0.1% +0.4% 0.0%

01:30 Australia Retail Sales Y/Y June +2.3% +1.1%

01:45 China HSBC Services PMI July 51.3 51.3

07:50 France Services PMI (Finally) July 48.3 48.3 48.6

07:55 Germany Services PMI (Finally) July 52.5 52.5 51.3

08:00 Eurozone Services PMI (Finally) July 49.6 49.6 49.8

08:30 Eurozone Sentix Investor Confidence August -12.6 9.8 -4.9

08:30 United Kingdom Purchasing Manager Index Services July 56.9 57.4 60.2

09:00 Eurozone Retail Sales (MoM) June +1.0% -0.6% -0.5%

09:00 Eurozone Retail Sales (YoY) June -0.1% -1.3% -0.9%

12:00 Canada Bank holiday

The dollar rose significantly against the euro, while restoring previously lost ground. Earlier, the dollar's decline was due to the release of strong data for the euro area.

As shown by the final results of studies that were presented to Markit, the index of business activity in the service sector rose slightly last month, but still remained below 50, indicating a contraction in activity.

According to the report, the July index of business activity in the services sector climbed to 49.8 points, compared with a preliminary reading at 49.6 and 48.3 in June. It is worth noting that many experts had expected the index to remain unchanged.

In addition, the data showed that an index based on a survey of executives in the manufacturing and services sectors, rose to 50.5 in July from 48.7 in June. This is the first reading above 50 points since January 2012, which was revised from earlier estimate last month at 50.4. The improvement was due to the production, which outweighed the slight reduction in the services sector.

But even strong PMI data had only a limited impact on the currency, as expectations have already been incorporated in the price. Now the attention of market participants focused on the publication of the index of business activity in the U.S. service sector.

Value of the pound against the dollar has increased significantly, which has helped to publish a report on Britain. According to the data, the July PMI index in the services sector rose to 60.2 from 56.9 in June, reaching its highest level since December 2006. It is worth noting that according to the average estimate of economists, the index had only grow to 57.4 points. We also add that the index is above 50.0 is for seven consecutive months, showing a continuous increase during this period. Last growth was underpinned by the rapid growth in sales volumes, as market conditions continued to strengthen.

Commenting on the latest figures, Paul Smith, senior economist at Markit said that the strong performance in the UK service sector were supported by improvements in the construction and production, and the recovery is gaining momentum, which may point to further growth throughout the summer.

In addition, the economist added that despite a substantial increase in the period of one month, the forward-looking elements of the survey point to a further strengthening of the gross domestic product in the third quarter.

The yen rose significantly against the U.S. currency, which was associated with the release of Chinese data. As the results of recent studies, which were presented on Saturday, the China Association of Logistics and Purchasing (Culzean) and the Research Center service industry under the State Statistical Bureau of China, at the end of last month the index of non-manufacturing activity rose slightly, while continuing its expansion.

According to the report, in July, the index of purchasing managers in non-manufacturing sector in the country amounted to 54.1 points, 0.2 percentage points higher than the June figure.

Recall that PMI - an indicator showing the level of activity in this case, the non-manufacturing sector. The indicator above 50 indicates growth in the sector, while a drop below this level indicates that there is a reduction.

We also add that PMI PMI in the non-manufacturing sector in the country has increased along with the PMI index in the manufacturing sector, which, according to previously published data, rose to 50.3 points in July from 50.1 points in June.

EUR / USD: during the European session, the pair fell to $ 1.3252

GBP / USD: during the European session, the pair rose to $ 1.5378, and then decreased slightly

USD / JPY: during the European session, the pair fell to Y98.27, but later recovered to Y98.58

At 14:00 GMT the United States will Composite Index ISM non-manufacturing activity in July. At 23:01 GMT Britain will present the BRC Retail Sales Monitor for July. At 23:30 GMT Australia is to publish an index of activity in the service sector of the AiG in July.

EUR/USD

Offers $1.3345/50, $1.3336, $1.3308-11, $1.3300

Bids $1.3260/50, $1.3230, $1.3205/190, $1.3165/50

GBP/USD

Offers $1.5450/60, $1.5430/35, $1.5420, $1.5390/400, $1.5380

Bids $1.5325/20, $1.5280, $1.5250/40, $1.5200, $1.5180, $1.5145/40

AUD/USD

Offers $0.9020/40, $0.9000/10, $0.8980, $0.8950, $0.8925/30

Bids $0.8880/75, $0.8800, $0.8750, $0.8740/35

EUR/JPY

Offers Y132.45/50, Y132.00, Y131.80, Y131.40/50, Y131.15/20

Bids Y130.55/50, Y130.25/20, Y130.00, Y129.80, Y129.55/50

USD/JPY

Offers Y99.50, Y99.08/15, Y99.00, Y98.75/80

Bids Y98.20, Y98.00, Y97.50, Y97.25/20

EUR/GBP

Offers stg0.8810/15, stg0.8790/00, stg0.8700, stg0.86955

Bids stg0.8625/20, stg0.8605/595, stg0.8585/80

EUR/USD $1.3000, $1.3120, $1.3225, $1.3250, $1.3300, $1.3370

USD/JPY Y97.00, Y97.50, Y98.00, Y99.00, Y99.50, Y100.00, Y100.50

GBP/USD $1.5100, $1.5175

EUR/GBP stg0.8700

UER/CHF Chf1.2300

AUD/USD $0.8900, $0.9000, $0.9005, $0.9050

00:30 Australia MI Inflation Gauge, m/m July 0.0% +0.5%

00:30 Australia MI Inflation Gauge, y/y July +2.4% +2.7%

01:30 Australia Retail sales (MoM) June +0.2% Revised From +0.1% +0.4% 0.0%

01:30 Australia Retail Sales Y/Y June +2.3% +1.1%

01:45 China HSBC Services PMI July 51.3 51.3

The Bloomberg U.S. Dollar Index remained lower after Chinese data signaled a slowdown in the world’s second-largest economy is moderating, sapping demand for the greenback as a haven asset. The non-manufacturing Purchasing Managers’ Index rose to 54.1 last month from 53.9 in June, the Beijing-based National Bureau of Statistics and China Federation of Logistics and Purchasing said on Aug. 3. A separate report from HSBC Holdings Plc and Markit Economics said today that their services PMI was unchanged in July at 51.3. A reading above 50 signals expansion.

The dollar fell for a second day against the yen after a U.S. government report on Aug. 2 showed employers added fewer-than-estimated workers in July, damping speculation the Federal Reserve will slow the pace of bond purchases. In the U.S., Labor Department figures showed on Aug. 2 that payrolls rose by 162,000 in July, the smallest gain in four months and compared with the 185,000 increase projected in a Bloomberg News survey of economists. The unemployment rate dropped to 7.4 percent from 7.6 percent.

New Zealand’s dollar tumbled against all of its major peers after China halted imports of milk powder from Fonterra Cooperative Group Ltd. Auckland-based Fonterra, the world’s largest dairy exporter, said Aug. 3 that three batches of a whey protein made at a New Zealand plant last year may contain bacteria that can cause botulism. Dairy products make up about a quarter of the South Pacific nation’s total overseas sales, which in turn account for about a third of economic output. Fonterra collects 89 percent of the milk produced in the country.

EUR / USD: during the Asian session the pair traded in a range of $ 1.3265-80

GBP / USD: during the Asian session the pair traded in a range of $ 1.5260-90

USD / JPY: during the Asian session the pair traded in a range of Y98.70-15

Financial markets in the Eurozone are heading lazily into the traditional summer lull as policy marker retire to their holiday retreats.  This morning sees the release of Spanish final PMI data at 0713GMT, Italy at 0743GMT, France at 0748GMT, Germany at 0753GMT and the EMU PMI numbers at 0758GMT. Analyst forecasts see German final services PMI coming in at 52.5 - unchanged on the June reading, with France at 48.3 and the EMU final services PMI at 49.6.

At 0828GMT, the UK July CIPS/Markit Services PMI data will be released. Across the Atlantic, there is a limited calendar in the US. Both main data releases are expected at 1400GMT, when both the July Employment Trends Index and the July ISM non-manufacturing PMI numbers.At 1545GMT, the Dallas Federal Reserve Bank President Richard Fisher is slated to deliver a speech on the economy, in Portland, Oregon.

00:30 Australia MI Inflation Gauge, m/m July 0.0% +0.5%

00:30 Australia MI Inflation Gauge, y/y July +2.4% +2.7%

01:30 Australia Retail sales (MoM) June +0.2% Revised From +0.1% +0.4% 0.0%

01:30 Australia Retail Sales Y/Y June +2.3%

01:45 China HSBC Services PMI July 51.3 51.3

07:00 United Kingdom Halifax house price index July +0.6% +0.3%

07:00 United Kingdom Halifax house price index 3m Y/Y July +3.7% +4.3%

07:50 France Services PMI (Finally) July 48.3 48.3

07:55 Germany Services PMI (Finally) July 52.5 52.5

08:00 Eurozone Services PMI (Finally) July 49.6 49.6

08:00 Eurozone Sentix Investor Confidence August -12.6 9.8

08:30 United Kingdom Purchasing Manager Index Services July 56.9 57.4

09:00 Eurozone Retail Sales (MoM) June +1.0% -0.6%

09:00 Eurozone Retail Sales (YoY) June -0.1% -1.3%

12:00 Canada Bank holiday

14:00 U.S. ISM Non-Manufacturing July 52.2 53.2

23:01 United Kingdom BRC Retail Sales Monitor y/y July +1.4% +2.0%

23:30 Australia AIG Services Index July 41.5