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The dollar fell against other major currencies on back of the ADP report for February

March 6, 2014, Thursday, 09:30 GMT | 04:30 EST | 14:00 IST | 16:30 SGT
Contributed by Forex-Metal

Asian and European trading sessions:

Euro: The euro exchange rate against the dollar rebounded, but still continued to trade slightly lower. Impact on the dynamics had the reported data for the euro area, on business activity and GDP. The eurozone economy expanded at a faster pace in the fourth quarter, and confirmed the initial estimates and forecasts of experts, helped by an increase in the volume of investment and exports. The report showed gross domestic product grew by 0.3 % in the fourth quarter, which corresponded to an estimate published on February 14. Recall, for the third quarter the economy expanded by 0.1 %. In annual terms, gross domestic product grew by 0.5 % after a 0.3 % drop in the third quarter. Annual rate was also consistent with the preliminary assessment and expert forecasts. The EUR / USD pair fell to $ 1.3706, and then recovered slightly during the European session.

British Pound: Pound has risen considerably against the U.S. dollar, which was helped by the submitted data and expectations of tomorrow's meeting of the Bank of England. As it became known, the UK services sector continued to show a steady expansion in February, but a little slow pace compared to the previous month. Support the sector continued to provide a significant increase in new orders. The data demonstrated that the PMI for the services sector by Markit Economics fell to 58.2 in February from 58.3 in January. The latter value was the lowest since June last year, but continued to show a sharp increase in activity on a monthly basis. Experts had expected a decline of the index to 58.0. Add growth recorded for 14 consecutive months. Recent increase in activity was supported by new orders. Since the number of orders continued to grow rapidly, the company decided to raise the number of staff in accordance with the current volume and future activities

The GBP / USD pair rose to $ 1.6727 during the European session.

Japanese Yen: The yen fell against the dollar at the fastest pace in the last seven weeks after Russian President Vladimir Putin said that he sees no urgent need for the introduction of Russian troops on the territory of Ukraine, as well as that culminated in the Russian military exercises in no way connected with the situation in Ukraine. The USD / JPY pair rose to Y102.50 during the European session.

American trading session:

U.S. Dollar: The dollar fell against other major currencies, aided published in U.S. statistics. As shown by recent data that were presented Automatic Data Processing (ADP), in February, employment in the private sector increased markedly, although not enough to confirm the evaluation of many economists. According to a report last month, the number of employees increased by 139 thousand people, compared with a revised downward indicator for the previous month at 127 million ( initially reported growth of 175 thousand jobs ) . Add that, according to the average forecast of this indicator would grow by 159 thousand

In turn, in February, the index of business activity in the U.S. service sector (ISM Non-Manufacturing) fell to 51.6 points, the minimum for the last four years, with 54 points in January, according to the Institute for Supply Management (ISM). According to experts, the value of this indicator was reduced to 53.8. Exceeding the index level of 50 points indicates growth of business activity in the service sector, while the index value below 50 indicates its decline. All major sub- indices, except one, were in February in the territory of the expansion (more than 50), and some even showed an increase.

Canadian dollar: The Canadian dollar rose against the U.S. dollar on a background of the outcome of the meeting of the Bank of Canada. Central Bank of Canada said that the downside risks to inflation are still important, despite the recent increase in consumer prices. Given the significant weakness of the economy and competition in the retail sector, inflation is likely to remain well below the target level of 2 % this year.

Bank of Canada, as expected, on Wednesday left its benchmark one-day interest rate unchanged at 1% level. The bank said that “in general, the fundamental drivers of growth, inflation in Canada continue to gradually strengthen," and the balance of risks” remained within the zone for which the current stance of monetary policy is appropriate”, while the risks associated with elevated imbalances households” have not changed significantly ."

Gold: The price of gold rises slightly after sharp fluctuations in the previous two sessions, while the impact of geopolitical factors weakened. A slight increase of the precious metal held against the depreciation of the dollar against major currencies, which contributed released in the U.S. statistics. The cost of the April gold futures rose to $ 1340.90 per ounce on the COMEX today.

Oil: The cost of oil brands West Texas Intermediate and Brent continued to fall after a government report showed that inventories in the U.S. rose the seventh consecutive week. April futures price for U.S. light crude oil WTI fell to $ 101.90 a barrel on the New York Mercantile Exchange.