European Session – Sterling outperforms after strong UK retail sales
March 21, 2013 1:19 pm
Euro is weaker today, dipping below $1.29 after disappointing economic data highlighted the continuing downturn in the euro zone. The purchasing managers’ (PMI) index for both the euro zone as a whole and Germany and France all showed deterioration in manufacturing activity in March.
A report compiled my Markit showed that the German manufacturing purchasing managers’ (PMI) index dropped to a seasonally adjusted 48.9 in March from a February’s final reading of 50.3. Germany is seen as the Europe’s engine of growth.
The data dampened market sentiment in the European session, after what was a more upbeat sentiment in Asia. Markets had begun firmly underpinned by the Federal Reserve’s latest policy statement on Wednesday. The Fed left the current aggressive policy stimulus unchanged despite recent improvements in the US economy.
Also the HSBC Purchasing Managers’ Index for China showed a rise to 51.7 in March from 50.4 in February, pointing towards stronger first-quarter growth in the world’s second-largest economy.
During European late morning trade, euro dipped to $1.2879, after an accelerated drop following the disappointing PMI data. EURUSD had opened the session at $1.2936.
The dollar fell to session lows against the yen, with USDJPY down 0.9 percent on the day to 95.10. EURJPY fell to 122.76 from an intraday high of 124.36 yen.
Today new Bank of Japan Governor Haruhiko Kuroda began his term in office and gave a press conference. He said the BOJ is ready to use all possible options to reach its 2 percent inflation target, but declined to comment on whether he would call an emergency meeting to discuss more easing ahead of the bank’s next policy meeting early next month.
Sterling was boosted by surprisingly stronger UK retail sales data in March, which rose by 2.1 percent ,beating expectations of a 0.5 percent rise.
GBPUSD rallied to $1.5208, up from the session open of $1.5114. EURGBP fell to a session low of 0.8488 from the session open of 0.8557.
Euro is weaker today, dipping below $1.29 after disappointing economic data highlighted the continuing downturn in the euro zone. The purchasing managers’ (PMI) index for both the euro zone as a whole and Germany and France all showed deterioration in manufacturing activity in March.
A report compiled my Markit showed that the German manufacturing purchasing managers’ (PMI) index dropped to a seasonally adjusted 48.9 in March from a February’s final reading of 50.3. Germany is seen as the Europe’s engine of growth.
The data dampened market sentiment in the European session, after what was a more upbeat sentiment in Asia. Markets had begun firmly underpinned by the Federal Reserve’s latest policy statement on Wednesday. The Fed left the current aggressive policy stimulus unchanged despite recent improvements in the US economy.
Also the HSBC Purchasing Managers’ Index for China showed a rise to 51.7 in March from 50.4 in February, pointing towards stronger first-quarter growth in the world’s second-largest economy.
During European late morning trade, euro dipped to $1.2879, after an accelerated drop following the disappointing PMI data. EURUSD had opened the session at $1.2936.
The dollar fell to session lows against the yen, with USDJPY down 0.9 percent on the day to 95.10. EURJPY fell to 122.76 from an intraday high of 124.36 yen.
Today new Bank of Japan Governor Haruhiko Kuroda began his term in office and gave a press conference. He said the BOJ is ready to use all possible options to reach its 2 percent inflation target, but declined to comment on whether he would call an emergency meeting to discuss more easing ahead of the bank’s next policy meeting early next month.
Sterling was boosted by surprisingly stronger UK retail sales data in March, which rose by 2.1 percent ,beating expectations of a 0.5 percent rise.
GBPUSD rallied to $1.5208, up from the session open of $1.5114. EURGBP fell to a session low of 0.8488 from the session open of 0.8557.
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