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US Session – Dollar lifted by upbeat ISM data

Posted on March 5, 2013 at 7:46 pm GMT

Risk appetite in the US session was high, pushing the Dow Jones Industrial Average to an all-time high and the Dollar Index traded at almost its highest level in six months. The dollar was lifted after a stronger-than-expected gauge of service-sector activity from the Institute for Supply Management (ISM), indicating the sector accelerated at its fastest pace in a year in February. The strong data led to speculation the Federal Reserve may have scope to reduce monetary stimulus earlier than [..]

European Session – Euro supported by above forecast retail sales

Posted on March 5, 2013 at 12:43 pm GMT

Euro was given a brief boost after better than forecast retail sales and improved Purchasing Managers’ Index numbers for the euro zone. Sales for January rose 1.2 percent, up from a previous decline of 0.8 percent. Private business activity in the euro zone in February was not as bad as first feared but still indicated a deepening economic decline. Markit’s Composite Output Index came in at 47.9 in February, above the earlier flash estimate of 47.3 but remained down on [..]

Forex News – Sterling gains after service PMI beats forecast

Posted on March 5, 2013 at 10:14 am GMT

Sterling benefitted from upbeat data which showed UK services Purchasing Managers Index (PMI) came in above forecast. The PMI number points to a 0.1 percent rise in UK GDP in the first quarter. According to a report from Markit/CIPS PMI, the PMI for services ticked up to 51.8 in February from 51.5 in January, beating forecasts of 51.0. This is the sector’s second consecutive month above the 50 point level which demarcates growth from contraction. The data is important since [..]

Forex News – Euro rises after improved PMI's

Posted on March 5, 2013 at 9:42 am GMT

The euro rose to a session high of $1.3074 after satisfactory numbers from the Purchasing Managers’ Index (PMI). Germany showed the best improvement, with its services PMI remaining in expansion territory at 54.7, up from a previous 54.1 points and beating expectations. Germany accounts for about 30 percent of euro zone output so the data was important. Germany is seen as Europe’s powerhouse, and is looked upon to help keep the euro zone afloat. Other PMI’s from other euro zone [..]

Asian Session – Aussie bounces after upbeat data and RBA

Posted on March 5, 2013 at 6:46 am GMT

The Aussie dollar rallied after much better than expected retail sales data and also a decision by the Reserve Bank of Australia to keep the benchmark interest rate unchanged at 3.00 percent. RBA governor Glenn Stevens reiterated there was room to cut if needed given a benign outlook for inflation but this was taken positively by the markets. So far the lower rates has given consumers confidence to spend, which was indicated in the improved retail sales numbers. Retail sales [..]

US Session – Euro hovers at $1.30 on talk of ECB rate cut

Posted on March 4, 2013 at 6:00 pm GMT

Market activity was quite muted with euro holding near 2-1/2 month lows as political concerns over Italy continue to weigh and the outlook on the euro zone is as clear as mud. Italian bond spread widened against German bunds to a new three year high. Focus is on Eurogroup meetings as well as Thursday’s European Central policy meeting. Some expect ECB President Mario Draghi to announce interest rate cuts, if not at this meeting then at the next, since fundamentals [..]

European Session – Euro falls below $1.30, Eurogroup and ECB meeting in focus

Posted on March 4, 2013 at 12:15 pm GMT

The euro was weaker in Monday’s European Session, dropping below the key $1.30 level after disappointing data that showed euro zone investor confidence fell in March, raising speculation that the European Central Bank will cut interest rates soon. EURUSD dipped to a session low of $1.2981, the lowest in 7 weeks, down 0.3 percent on the day. Euro also fell against the pound, with EURGBP touching a low of 0.8634, down 0.15 percent on the day. It will be tough [..]

Asian Session – Aussie drops to 8-mth low after domestic and China data

Posted on March 4, 2013 at 6:55 am GMT

The Australian dollar fell to a seven month low against the dollar in Monday’s Asian session after a report showed building approvals unexpectedly declined, adding to speculation the Reserve Bank of Australia will cut interest rates this year. Also weighing on the aussie was a disappointing data from China which showed the Purchasing Managers’ Index for services industries fell in January, recording the slowest expansion in five months. China is the largest trading partner for both Australia. PMI fell to [..]

Forex News – US federal budget cuts take effect after lawmakers fail to reach deal

Posted on March 2, 2013 at 8:53 pm GMT

The United States economic recovery is at risk of slowing down after the March 1st deadline for automatic federal spending cuts to talk into effect. President Obama and Congress failed to reach an agreement before the Friday midnight deadline for these so-called sequester cuts which will result in $85 billion worth of government spending cuts this year. President Obama said after signing into effect these cuts that “These cuts are not smart, they will hurt our economy and cost us [..]

US Session – Euro steadies at $1.30

Posted on March 1, 2013 at 10:26 pm GMT

The euro hovered just slightly above the key $1.30 level in the US session after having fallen below it earlier in the day for the first time in two months after a wave of downbeat economic data from the euro zone. Particularly manufacturing PMI disappointed as well as jobs data which showed unemployment climbed to a record high. The weak data raise the likelihood of the European Central Bank cutting interest rates soon. Safe haven demand drove investors to the [..]

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