Later this morning, finalized Services PMI numbers also need consideration. The Bank of Japan recently signaled an increase in reliance on the services sector to fuel demand-driven inflationary pressure.

According to the preliminary survey, the Jibun Bank Services PMI fell from 53.1 to 52.5 in February. Beyond the headline numbers, investors must consider the prices and employment sub-components. Higher input prices from wages and employment would also support bets on an April pivot.

Beyond the numbers, investors must monitor Bank of Japan commentary. Reaction to the inflation numbers and views on the timeline to exit negative rates could move the dial.

US Economic Calendar: ISM Services PMI and the Fed

On Tuesday, the ISM Services PMI and sub-components will draw investor interest. The services sector accounts for over 70% of the US economy. An unexpected pickup in service sector activity could reduce bets on a June Fed rate cut.

Economists forecast the ISM Services PMI to fall from 53.4 to 53.0 in February.

Beyond the headline number, the Prices and Employment sub-components also need consideration. Economists predict the ISM Services Prices Index to fall from 64.0 to 63.0 and the Employment Index to slip from 50.5 to 50.4. Upward trends in the Prices and Employment Indexes could influence consumer price inflation trends and the Fed rate path.