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The yen strengthened against all major currencies after the fall of the stock market of Asia

February 21, 2014, Friday, 15:44 GMT | 10:44 EST | 20:14 IST | 22:44 SGT
Contributed by Forex-Metal

Asian and European trading sessions:

Euro: The rate of the euro fell sharply against the U.S. dollar, which was associated with the release of data on PMI. The decline began after a report showed that private sector activity in France has declined at a faster pace in February, which stood at the head of a marked deterioration in service sector activity. On a seasonally adjusted composite index of activity that assesses the effectiveness of the manufacturing and service sectors, fell to two-month low in February, and were 47.6 points, compared to 48.9 points in January. Recall that the value of this index below 50 indicates a contraction in activity in the sector. Meanwhile, it became known that the purchasing managers' index for the manufacturing sector fell to 48.5 in February from 49.3 in the year. Economists expected the index to rise to 49.6. At the same time, the activity indicator for the service sector fell to 46.9, compared with 48.9 in January. Expectations were at 49.5.

Pressure was also provided by the data for the euro area, which showed that the private sector economy continued its expansion in February, increased this streak to eight consecutive months, but showed weaker results than predicted by many economists. According to the report, the composite index, which measures the efficiency in the manufacturing sector and services, totaled 52.7 points in February, which was slightly lower than January's 31 -month high at 52.9 points. Economists had expected the figure was 53.1 points. Studies also showed that the Purchasing Managers Index for the manufacturing sector fell to 53 points in February to 54 points in January. Expectations were at the level of 54.2 points. Meanwhile, the activity indicator in the service sector rose to 51.7 from 51.6 at the beginning of the year. Economists expected the index to rise to 51.9. The EUR / USD pair fell to $ 1.3685 during the European session.

Japanese Yen: The yen strengthened against all major currencies after the fall of the stock market of Asia. The negative on the stock market part of the publication of disappointing statistics on Chinese production. PMI from HSBC China fell to its lowest level in seven months and was 48.3, below the final data for January (49.5) and the average estimate of economists (49.5). The USD / JPY pair fell to Y101.66, then rose to Y102.10 during the European session.

Australian dollar: The Australian dollar fell after the publication of disappointing statistics on Chinese production. As it became known , the Chinese manufacturing index fell again in February , continuing progress on reducing the territory , reaching a seven-month low , and that was due to a fall in new orders , suggesting that the economic recovery is losing momentum .

On a seasonally adjusted preliminary purchasing managers’ index from Markit / HSBC, which measures activity in the manufacturing sector fell to 48.3 points in February, compared to 49.5 points in January? Economists had expected the index to fall to the level of 49.4 points. The index currently remained below 50 points for the second month in a row and is at its lowest level in seven months.

Swiss franc: The Swiss franc fell markedly against the dollar, which has been associated with risk aversion. The positive trade balance data could not help franc. As it became known, Switzerland’s trade surplus rose sharply in January, driven by an increase in exports of chemical and pharmaceutical products.

American trading session:

U.S. Dollar: The dollar came under slight pressure after the block statistics from the U.S. Recent data from the U.S. Labor Department showed that the number of applications for unemployment benefits fell slightly last week, which was another sign of improvement in the labor market. According to the report, the seasonally adjusted number of initial claims for unemployment benefits fell for the week ending February 15, 3 thousand, reaching at this level of 336 thousand last value was slightly higher than predicted by experts - at the level of 335 thousand, but still was lower than average at around 344 thousand for the whole of last year.

Gold: The gold prices rose on the dollar's decline and increased demand in the physical market. Dealers expect jewelers will buy gold in times of price reduction, and high import duty on gold in India encourages its smuggling. Margins on gold bars in Singapore remained at last week's $ 1.20-1.50 per ounce to the spot price in London and dealers noted buying in Indonesia and sale of scrap gold in Thailand. Margins on gold bars in Hong Kong are held in the range of $ 1.30-1.50 to the price in London. The cost of the April gold futures rose to $ 1318.00 per ounce on the COMEX today.

Oil: The cost of oil brand WTI fell from four-month high after the Energy Information Administration reported that stocks in the U.S. rose. March futures price fell to $ 102.75 a barrel on the New York Mercantile Exchange.