European Session – Dollar falls on ADP jobs data, sterling weak after UK services PMI
February 5, 2014 2:41 pm
Fundamental news headlines played a role in currency moves today as some key economic data from all regions were released, including the Eurozone, the UK and the US. The British pound was the main currency that was impacted by data and was one of the worst performing currencies during the European session.
Sterling fell against the dollar after UK services PMI data were released for the month of January. While the 58.3 headline figure was well in expansionary territory (above 50 signifies expansion and below 50 is contraction), the number was below expectations of 59.1 and was lower than December’s 58.8.
The pound dipped to a low of 1.6264 immediately after the data and subsequently extended lower to end the session with a 0.38% loss at 1.6329.
Thursday’s Bank of England policy meeting will be closely watched. The weak data will likely reinforce the view that the central bank will not raise rates soon.
The euro was steady most of the session against the dollar, keeping within its recent 3-day range. There was some weakness evident in the single currency after disappointing Eurozone retail sales figures released today for the month of December, which showed a higher-than-expected drop of 1.6%.
The euro traded between $1.3503 -1.3527 during the session, before briefly shooting up to 1.3555 after worse-than-expected US ADP jobs numbers. The euro ended the session at 1.3514, up 0.07%. Against the yen, the euro lost 0.04% at 136.8. For the euro, the main focus will be Thursday’s European Central Bank policy meeting. Based on recent weak data, expectations are growing among economists for more ECB action. Such a move includes a possible lowering of the current 0.25% rate.
The dollar was weak against the yen throughout the session, and accelerated its decline after disappointing ADP jobs data.
The private-sector ADP employment report showed a slower pace of growth in jobs than expected. Private employers added 175,000 jobs in January, lower than the 190,000 forecast and lower than an originally estimated December gain of 238,000 (which was revised down to 227,000).
The dollar dropped against the yen to an intraday low after the data, fetching 100.79, compared to an early day high in Asia of 101.75. The dollar lost 0.11% in the session to end at 101.21. Friday’s closely watched US government nonfarm payrolls report will be a key risk for the dollar.
The United States ISM non-manufacturing PMI data will be in focus in the upcoming North American session.
Fundamental news headlines played a role in currency moves today as some key economic data from all regions were released, including the Eurozone, the UK and the US. The British pound was the main currency that was impacted by data and was one of the worst performing currencies during the European session.
Sterling fell against the dollar after UK services PMI data were released for the month of January. While the 58.3 headline figure was well in expansionary territory (above 50 signifies expansion and below 50 is contraction), the number was below expectations of 59.1 and was lower than December’s 58.8.
The pound dipped to a low of 1.6264 immediately after the data and subsequently extended lower to end the session with a 0.38% loss at 1.6329.
Thursday’s Bank of England policy meeting will be closely watched. The weak data will likely reinforce the view that the central bank will not raise rates soon.
The euro was steady most of the session against the dollar, keeping within its recent 3-day range. There was some weakness evident in the single currency after disappointing Eurozone retail sales figures released today for the month of December, which showed a higher-than-expected drop of 1.6%.
The euro traded between $1.3503 -1.3527 during the session, before briefly shooting up to 1.3555 after worse-than-expected US ADP jobs numbers. The euro ended the session at 1.3514, up 0.07%. Against the yen, the euro lost 0.04% at 136.8. For the euro, the main focus will be Thursday’s European Central Bank policy meeting. Based on recent weak data, expectations are growing among economists for more ECB action. Such a move includes a possible lowering of the current 0.25% rate.
The dollar was weak against the yen throughout the session, and accelerated its decline after disappointing ADP jobs data.
The private-sector ADP employment report showed a slower pace of growth in jobs than expected. Private employers added 175,000 jobs in January, lower than the 190,000 forecast and lower than an originally estimated December gain of 238,000 (which was revised down to 227,000).
The dollar dropped against the yen to an intraday low after the data, fetching 100.79, compared to an early day high in Asia of 101.75. The dollar lost 0.11% in the session to end at 101.21. Friday’s closely watched US government nonfarm payrolls report will be a key risk for the dollar.
The United States ISM non-manufacturing PMI data will be in focus in the upcoming North American session.
Related Posts: