As can be seen from the graph, the most significant growth among the developed countries is noted in the United States, the smallest in Japan and the Eurozone. Over the past two months, the most robust growth has occurred in the UK.
The dynamics of activity in the service sector is the primary leading indicator of economic recovery after the pandemic in developed countries. This indicator allows predicting the future dynamics of inflation and, accordingly, central banks' monetary policy. There is a serious risk of sharp inflation surges in a situation where service indices begin to exceed pre-crisis levels against the backdrop of ongoing economic stimulus programs. Therefore, market participants are trying to be ahead and "buy the idea" of early curtailment of incentive programs. Based on the graph, it may happen primarily in the US, Australia and the UK. It will be fundamental support for the currencies of these countries in the future.
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The dynamics of activity in the service sector is the primary leading indicator of economic recovery after the pandemic in developed countries. This indicator allows predicting the future dynamics of inflation and, accordingly, central banks' monetary policy. There is a serious risk of sharp inflation surges in a situation where service indices begin to exceed pre-crisis levels against the backdrop of ongoing economic stimulus programs. Therefore, market participants are trying to be ahead and "buy the idea" of early curtailment of incentive programs. Based on the graph, it may happen primarily in the US, Australia and the UK. It will be fundamental support for the currencies of these countries in the future.
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