Market themes of the Day: July Non-farm payroll report headlines Friday

What you need to know before markets open
In Europe

• German services PMI are expected to remain steady at 54.4 in July and in combination with lower manufacturing the composite PMI might tick lower to 55.1.
• The Eurozone services PMI are also expected to remain unchanged at 54.4 in July, with composite POMI falling to 55.0.

In the UK

• The Bank of England raised the Bank rate as expected by 25 basis points in a unanimous vote emphasizing the “gradual and limited” path of monetary policy normalization. Read more details about the dovish rate hike from Bank of England in my Analysis here. 
• The UK service PMI is unlikely to be saved by the English national football squad progressing emotively in July to World Cup semifinal ar fall to 54.7 in July. For more details read my Preview here and learn about how to trade the indicator with GBP/USD here. 

In the US

• The US jobless claims declined to 218K in the week ending July 21.
• The US Non-farm payroll report is expected to see 190K new jobs added in July while wages are seen rising 2.7% y/y. For details read Valeria’s Preview here and learn more about how to trade the report with EUR/USD here. 

In China

• China’s non-manufacturing PMI is expected to decelerate to 52.8 in July compared to 53.8 in June. The slowdown in overall growth momentum in China was broad-based, with both manufacturers and service providers in China registering weaker increases in activity at the beginning of the third quarter.