The British pound fell sharply against the U.S. dollar on release of unexpectedly weak data on Britain
February 6, 2014, Thursday, 10:08 GMT | 05:08 EST | 14:38 IST | 17:08 SGT
Asian and European trading sessions:
Euro: The euro traded in a narrow range against the U.S. dollar, as many participants gradually shift its attention to tomorrow's ECB meeting. Little impact on the European currency had data for the euro area, which showed that the euro zone's private sector waked up in January, while reaching the highest levels in the last two and a half growth, rapid growth of production eclipsed the more modest expansion in the services sector.
According to the report, the final composite purchasing managers’ index from Markit, which measures business activity in the manufacturing sector and in the service sector, rose to 52.9 in January from 52.1 in the previous month. It was the highest result since June 2011. Nevertheless, the final assessment was at - 53.2. In Markit said that growth in the eurozone PMI observed broad-based and led was lifting by Germany. The data also showed that the index of business activity in the services sector rose to a four-month high in January - to the level of 51.6 from 51.9. However, this result was below the pre-assessment at the level of 51.9. The EUR / USD pair traded in the range of $ 1.3500 -$ 1.3529 during the European session.
British Pound: The British pound fell sharply against the U.S. dollar, which was associated with the release of unexpectedly weak data on Britain. As it became known, the growth in the services sector in Britain, which is dominant, unexpectedly slowed last month, but activity remained high, suggesting that the economy will gain momentum in the first quarter of 2014. The survey also showed growth companies price pressure for the service sector, but not to a level that could be a problem for the Bank of England, and encourage it to raise interest rates. According to the report, the index of services PMI fell to 58.3 in January from 58.8 points in December, reaching its lowest level since June. Add that according to the average forecasts of experts, the value of this index would grow to 59.1 points. However, despite the decline, the index remained well above 50 points, which separates growth from contraction.
Meanwhile, it became known that the composite indicator of the three indices PMI (manufacturing, construction and services sector) fell to 59.1 in January from 59.4 in December, dropping to its lowest level since June. The GBP / USD pair fell to $ 1.6263 during the European session.
American trading session:
U.S. Dollar: The dollar fell amid mixed statistics. In the U.S. went out report that the activity in the U.S. non-manufacturing sector continued to grow in January. This was evidenced by data released Wednesday by the Institute for Supply Management (ISM). Purchasing Managers Index (PMI) for the non-productive sphere the U.S. in January rose to 54.0 against 53.0 in December. Economists had expected the index to rise last month to 53.8. Values ??above 50 indicated growth in activity. As it was shown by recent data that were presented Automatic Data Processing (ADP), in January, private sector employment increased markedly, although not enough to confirm the evaluation of many economists. According to a report last month, the number of employed increased by 175,000 people, compared with a revised downward indicator for the previous month at 227 million (initially reported growth of 238 thousand jobs). Add that, according to the average forecast of this indicator would grow by 191000.
Gold: The price of gold rose to one-week high after the release of the employment report from ADP. The cost of the April gold futures rose to $ 1274.70 per ounce on the COMEX today.
Oil: The oil price declined after a government report showed an increase in U.S. oil inventories. The March futures price for U.S. light crude oil WTI fell to $ 97.00 a barrel on the NYMEX.