Yesterday's release of the February UK service sector purchasing manager's index cause a bit of a flap as the sentiment index fell to the lowest it has been since 2012. Sterling slipped and that took the shine off a relatively positive week for the Pound. Although the direction of travel for Sterling won't be to everyone's taste, it is nice to report something causing the Pound to move which doesn't contain the word 'Brexit'.
- EU and UK service sectors disappoint
- US employment report should boost USD
The Eurozone PMI index was the worst in 13 months and that caused the Euro to twitch in a negative direction yesterday. Fears were expressed in many quarters that the Eurozone's fragile recovery could slip into stagnation. In fact France's PMI was into negative territory for the first time in a year.
US version of that service sector index, as published by the Institute for Supply Manager gave us a positive result for a change. The ISM's non-manufacturing index slipped from 53.5 to 53.4 but that was still on the right side of the 50 divide between positive and negative sentiment.
Today brings the US employment report for February. Roughly 200,000 new jobs are thought to have been created and wages are expected to have risen by a modest 0.1%. The USD has given up on some of the gains it made in the earlier part of the year but should extend those gains if the numbers are as per these forecasts. However, there is also a chance we will see the GBPUSD rate push up to $1.43 before that happens.
Other than the US employment data, the market is a quiet one today so we can all start switching off early and planning our weekends. If you haven't done anything about it yet, can I just say two words? "MOTHER'S DAY". You know what you need to do. Have a great weekend everyone.
FX Research by David Johnson
- A photon checks into a hotel and the receptionist asks him if he has any luggage. "No," says the photon "I’m travelling light.”
- What does a dyslexic, agnostic, insomniac do at night? Lies awake wondering if there really is a dog.
- How many surrealists does it take to screw in a light bulb? A fish.
- There are 10 types of people in this world. Those that know binary, and those that don’t.
- When I heard that oxygen and magnesium hooked up I was like OMG.
- Never trust an atom. They make up everything.
- How many developers does it take to change a light bulb? None, it’s a hardware problem.
Daily Currency Analysis with Alastair Sweetman
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