ISM non-manufacturing index is due at the top of the hour
The August ISM non-manufacturing index is due out at 10 am ET and expected to turn modestly lower to 55.0 from 55.5.
That would mirror the Markit services PMI, which slipped to 51.0 from 51.4 in the month.
However, there are some worries about consumer after car sales slipped in August and non-farm payrolls missed estimates.
Fed implications
Expectations for a rate hike have moderated since the miss in non-farm payrolls on Friday and the weak ISM manufacturing index last week. Yet another soft number would cut into the 32% probability priced in Fed funds futures for a hike on Sept 21.
How much of a miss? The range of economist estimates spans from 52.6 to 56.6. It would take something close to 54.0 to be considered a miss worthy of worry. That would have the potential to spark a quick drop in the dollar.
On the flipside, a reading of 56.0 or higher would be seen as confirming the hawkish bias at the Fed and boost the dollar.
