Forex: EUR/JPY boosted by better than expected Services PMI

Pressured throughout the Asian session, the EUR/JPY revived a little after going as low as 121.14 as investors priced in expectations ahead of Markit Services PMI data in the Eurozone. The cross didn't even fully retrace losses, staying below 121.60. However, better than expected data in France in Germany is boosting sentiment.

In Germany, data only eased from 55.7 to 54.7 (consensus of 54.1). In France, data surprised by moving higher from 43.6 to 43.7 (consensus of 42.7).

The final reading of February Services PMI in Spain came in even lower than expected, from 47.0 to 44.7 (consensus of 46.0), while it came in line with consensus in Italy (down from 43.9 to 43.6).

"The immediate risk appears to be for extension of the consolidation phase", wrote UBS analyst Gareth Berry, pointing to resistance at 124.28 ahead of 127.92, while support is at 120.36 ahead of 118.73.

Mar 5, 2013

Forex Flash: Soft UK PMIs could get tongues wagging - Societe Generale

Kit Juckes, Global head of Currency Strategy at Societe Generale feels that soft UK PMI numbers today could get people talking before Thursday´s MPC meeting.

Commodities Brief – Silver makes upside attempt at 29.00, precious metals eye central banks and US data

Gold prices have rallied Tuesday after a forgettable string of sessions that left the yellow metal incurring losses or trading sideways. However, with the advent of several central banking decisions, suddenly gold is back in play, as investors welcome it back as a bulwark against potential monetary policy decisions and ultimately inflation. Having jumped to the 1583 region (session highs) during overnight trading, the price of gold has now eased slightly back towards USD $1579.60 per oz. in these moments. Ultimately, investors will be mindful of the impending payrolls data in the United States towards the end of the week, which should provide an accurate snapshot of the US economy in the wake of checkered data last week.