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The euro fell after press conference of the ECB head, Mr. Draghi

April 4, 2014, Friday, 12:50 GMT | 08:50 EST | 16:20 IST | 18:50 SGT
Contributed by Forex-Metal

Asian and European trading sessions:

Euro: The Euro is traded slightly higher against the dollar after the ECB's decision to leave rates unchanged - at 0.25 %. Little impact on today's currency also provided data that showed business activity index for the services sector fell in March to reach 52.2 from February's 32-month high of 52.6 points . Experts expected that this figure will be 52.4 points. However, the service sector firms were more optimistic about future prospects - the sub- index of business expectations rose to 64.0 from 62.4, the highest since mid-2011. The final composite index fell to 53.1 from 53.3 in March. Preliminary reported 53.2. However, the index remains above 50 for the ninth consecutive month, based on improved market conditions and an increase in new orders.

Another report showed: in February, sales rose by 0.4 percent compared with an increase of 1.0 percent in January (revised downwards from 1.6 per cent). Many economists had forecast a decline in sales of 0.3 percent. Add that food sales rose in February by 0.3 percent, while sales of non-food - by 0.8 percent. In annual terms, sales in February also increased - by 0.8 percent, were slightly above estimates of experts at 0.6 percent. The EUR / USD pair fell to $ 1.3742 but then recovered to $ 1.3773 during the European session.

British Pound: Pound fell against its competitors in connection with the release of weak UK data. As it became known, the services sector continued to expand in the UK last month, indicating that the sustained economic growth in the first quarter, although the pace of this growth was the slowest since June last year. According to the index of purchasing managers index for the services sector fell to 57.6 points in March from 58.2 in February, was below the consensus forecast of economists at the level of 58.2 points. Nevertheless, the index remained well above the level of 50 points, denoting expansion and pointing to strong growth in the services sector, which accounts for over three quarters of the UK economy. Add the employment index in the services sector fell to 53.5 in March from 55.6 in February; the new orders index increased at the slowest pace in 10 months, and the index of business expectations fell to its lowest level since November. Studies have also revealed : a composite index of business activity for the manufacturing, construction and the service sector fell to 58.1 in March from 58.6 in February , while reaching the lowest level since June last year. We add that the prices paid index fell to its lowest in nearly a year. The GBP / USD pair fell to $ 1.6577 during the European session.

Japanese Yen: The Japanese yen was affected by the data for China, which showed that the mood in the service sector in China have improved in March, which is a positive sign for the second largest economy in the world. Purchasing Managers Index for China's services sector, which is calculated HSBC, rose to 51.9 against 51.0 in February. Nevertheless, the official index of manufacturing activity in China in March dropped to around 54.5 to 55.0 in February. The USD / JPY pair fell to Y104.07 from Y103.91 during the European session.

American trading session:

Euro: The euro fell after the head of the European Central Bank Mario Draghi did not rule out that the European regulator may implement quantitative easing program, while maintaining a long period of inflation. “We do not exclude the possibility of quantitative easing in order to cope with that too long a period of low inflation “- Mr. Draghi said at a press conference after a meeting of the ECB.

U.S. Dollar: Some support to the dollar had data showing that in March the index of business activity in the U.S. service sector, calculated by the Institute for Supply Management (ISM), increased slightly, reaching the level of 53.1 while compared with the February reading at around 51.6. According to experts, the value of this indicator was up to 55.5. All major sub- indices were in February in the territory of the expansion (more than 50), and 3 out of 4 even showed growth.

Gold: Gold prices declined on the eve of leaving Friday employment report in the U.S., which will assess the state of the economy and prospects for Fed stimulus. The cost of the June gold futures dropped to $ 1281.92 per ounce on the COMEX today.

Oil: Oil price rose, amid concerns that the negotiations between the Libyan government and the rebels are not reinstated export of oil. Cost of May futures on oil WTI rose to $ 98.85 per barrel on the New York Mercantile Exchange