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.

European stocks rose for a sixth day, the longest winning streak this year, as services output shrank at a slower pace than initially forecast, outweighing worse-than-estimated earnings from HSBC Holdings Plc.

Euro-area services output shrank at a slower pace than initially estimated in July, adding to evidence the economy is gathering strength to pull out of a record-long recession. An index of activity in the services industry based on a survey of purchasing managers rose to 49.8 from 48.3 in June, London-based Markit Economics said. That’s above an initial estimate of 49.6 on July 24. A reading below 50 indicates contraction.

A measure of U.K. services growth climbed more than forecast to the highest level in more than six years.

The Institute for Supply Management’s index of U.S. non-manufacturing businesses rose to 56 in July from the prior month’s 52.2, a report from the Tempe, Arizona-based group showed today. The median forecast in a survey of economists called for a gain to 53.1.

National benchmark indexes increased in 11 of the 17 western European markets open today. France’s CAC 40 climbed 0.1 percent, while Germany’s DAX slid 0.1 percent and the U.K.’s FTSE 100 dropped 0.4 percent. The Icelandic exchange was closed for a holiday.

Lloyds jumped 2.7 percent to 75.69 pence, the highest price since October 2010. Chief Executive Officer Antonio Horta-Osorio said during investor presentations that he plans to pay 60 percent to 70 percent of earnings as dividends by 2015, according to a report by the Financial Times, which cited unidentified people involved in the meetings.

Mediaset rose 4 percent to 3.43 euros. Deutsche Bank AG analyst Laurie Davison upgraded the broadcaster controlled by Silvio Berlusconi to buy from hold, saying pullbacks in the share price offer attractive entry points.

Drax added 2.9 percent to 672.5 pence, the highest since October 2008. Goldman Sachs Group Inc. analyst Andrew Mead lifted his rating on the U.K. utility to conviction buy from neutral, citing the company’s transformation from a coal-fired power plant to a mostly biomass-fueled facility.

HSBC slid 4.4 percent to 721.7 pence, the largest drop since November 2011. First-half net income rose 10 percent to $10.28 billion after U.S. loan impairments fell, the London-based lender said. That was below the $10.57 billion estimate of analysts.

West Texas Intermediate crude fell for a second day after Libya reopened a terminal closed by protests, while Iranian President Hassan Rohani pledged in his inaugural speech to shun extremism and take a moderate approach.

Futures dropped as much as 1.2 percent as Libyan officials said the Marsa el Hrega port was operating and all oil fields in Libya’s western region returned to normal. Rohani took his oath of office yesterday, saying the U.S. and the European Union should end sanctions aimed at stopping Iran’s nuclear enrichment program, which have curbed its oil exports.

Oil advanced earlier after China’s non-manufacturing Purchasing Managers’ Index showed the first acceleration since March, according to government data on Aug. 3. The index rose to 54.1 in July from 53.9. The gain follows an unexpected increase in a factory index last week and may bolster confidence that Premier Li Keqiang’s policies are helping to prevent a deeper slowdown.

The U.S. and China are the world’s two biggest oil-consuming countries, accounting for about a third of global demand in 2012, according to BP Plc (BP/)’s Statistical Review of World Energy.

WTI crude for September delivery declined 30 cents, or 0.3 percent, to $106.64 a barrel at 10:42 a.m. on the New York Mercantile Exchange. Prices earlier climbed as much as 0.7 percent. The volume of all futures traded was 27 percent below the 100-day average. Futures increased 2.1 percent last week as Libyan exports were cut.

Brent oil for September settlement decreased 50 cents, or 0.5 percent, to $108.45 a barrel on the London-based ICE Futures Europe exchange. The European benchmark traded at a $1.81 premium to WTI, down from $2.01 on Aug. 2.

Gold fell after the dollar strengthened slightly 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.

Investors are closely watching U.S. economic data in an attempt to determine the future course of monetary policy. Fed officials have stated that they will take into account the labor market and other economic indicators, when they decide on the timing and speed of folding.

The cost of the October gold futures on COMEX today dropped to $ 1301.70 per ounce.

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

U.S. stock-index futures fell slightly as investors awaited a report that may show American service industries grew at a faster pace in July.

Global Stocks:

Nikkei  14,258.04 -208.12 -1.44%

Hang Seng 22,222.01 +31.04 +0.14%

Shanghai Composite 2,050.48 +21.06 +1.04%

FTSE  6,619.45 -28.42 -0.43%

CAC  4,051.76 +6.11 +0.15%

DAX 8,391.98 -14.96 -0.18%

Crude oil $106.08 -0.80%

Gold $1304.70 -0.44%

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

European stocks advanced for a sixth day, the longest winning streak this year, as services output shrank at a slower pace than initially estimated last month. U.S. index futures were little changed, while Asian shares fell.

The Stoxx Europe 600 Index advanced 0.5 percent to 305.62 at 10:24 a.m. in London, the highest since May 29. The benchmark gauge rose every day last week, adding 1.8 percent in the period, as European Central Bank President Mario Draghi said interest rates in the euro zone will remain low for an extended period. The measure has rallied 9.3 percent in 2013.

The Stoxx 600 is trading at 13.9 times estimates earnings, the most expensive since December 2009, according to data compiled by Bloomberg. The volume of share changing hands in the index was 29 percent less than the 30-day average today,.

Euro-area services output shrank at a slower pace than initially estimated in July, adding to evidence the economy is gathering strength to pull out of a record-long recession. An index of activity in the services industry based on a survey of purchasing managers rose to 49.8 from 48.3 in June, London-based Markit Economics said. That’s above an initial estimate of 49.6 on July 24. A reading below 50 indicates contraction. A measure of U.K. services growth climbed more than forecast to the highest level in more than six years.

A report at 10 a.m. New York time may show the Institute for Supply Management’s index of U.S. non-manufacturing businesses rose to 53.1 in July from the prior month’s 52.2, according to survey of economists. The ISM services survey covers industries ranging from utilities and retailing to housing, health care and finance.

Lloyds jumped 4.4 percent to 77 pence, the highest price since September 2010. Chief Executive Officer Antonio Horta-Osorio said during investor presentations that he plans to pay 60 percent to 70 percent of earnings as dividends by 2015, according to a report by the Financial Times, which cited unidentified people involved in the meetings.

CNP Assurances (CNP) jumped 3.5 percent to 13.55 euros. Exane BNP Paribas analyst Thomas Jacquet boosted his rating on France’s largest life insurer to outperform from neutral, while raising the share-price estimate by 31 percent.

Mediaset rose 3.9 percent to 3.43 euros. Deutsche Bank AG analyst Laurie Davison upgraded the broadcaster controlled by Silvio Berlusconi to buy from hold, saying pullbacks in the share price offer attractive entry points.

Drax added 3.3 percent to 675 pence after Goldman Sachs Group Inc. lifted its rating on the operator of U.K.’s largest coal-fired power station to conviction buy from neutral.

FTSE 100 6,661.1 +13.23 +0.20%

CAC 40 4,058.48 +12.83 +0.32%

DAX 8,422.93 +15.99 +0.19%

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

Asian stocks fell, with the benchmark regional index on course for its first loss in three days, as the yen’s gain weighed on Japanese exporters and U.S. jobs data missed estimates.

Nikkei 225 14,258.04 -208.12 -1.44%

Hang Seng 22,224.82 +33.85 +0.15%

S&P/ASX 200 5,111.25 -5.51 -0.11%

Shanghai Composite 2,050.48 +21.06 +1.04%

Mazda Motor Corp., an automaker that gets 30 percent of its sales in North America, dropped 4.1 percent in Tokyo.

Fonterra Shareholders Fund tumbled 3.7 percent in Wellington after China and Russia halted imports of milk powder from Fonterra Cooperative Group Ltd., the world’s largest dairy exporter.

Tianneng Power International Ltd., a maker of storage batteries, tumbled as much as 19 percent before it was was suspended from trading in Hong Kong.

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