European session: The yen has risen sharply
05.02.2013, 13:15

European session: The yen has risen sharply

Data

00:01 United Kingdom BRC Retail Sales Monitor y/y January +0.3% -0.5% +1.9%

00:30 Australia Trade Balance December -2.64 -0.81 -0.43

00:30 Australia House Price Index (QoQ) IV quarter +0.3% +0.3% +1.6%

00:30 Australia House Price Index (YoY) IV quarter +0.3% +0.9% +2.1%

01:45 China HSBC Services PMI January 51.7 54.0

03:30 Australia Announcement of the RBA decision on the discount rate - 3.00% 3.00% 3.00%

03:30 Australia RBA Rate Statement -

07:00 Switzerland Trade Balance December 2.90 2.74 1.00

08:50 France Services PMI (finally) January 43.6 43.6 43.6

08:55 Germany Services PMI (finally) January 55.3 55.3 55.7

09:00 Eurozone Services PMI (finally) January 48.3 48.3 48.6

09:30 United Kingdom Purchasing Manager Index Services January 48.9 49.8 51.5

10:00 Eurozone Retail Sales (MoM) December -0.1% -0.5% -0.8%

10:00 Eurozone Retail Sales (YoY) December -1.9% -1.4% -3.4%


The euro rose against the yen, reaching maximum values ​​at the same time for the last 2.5 years, which was associated with the release of data that showed that the final purchasing managers index for the euro area services sector rose in January more than originally reported that immediately also led to increased demand for the currency. According to the final data, the composite index, which measures activity in the manufacturing sector and the service sector rose in January to a level of 48.6, which is a nine-month high, compared with a preliminary estimate at around 48.2. Recall that in December, the index stood at 47.2. Additionally, the final purchasing managers' index for the services sector rose to 48.6, up from 47.8 in December. In addition, the reading was higher than the preliminary assessment 48.3.
Meanwhile, the currency remains under pressure, as many market participants are waiting for the meeting of the European Central Bank, which announced bude decision on interest rates.
The Australian dollar fell against the dollar after the central bank said that, given the outlook for inflation, there is scope for further reductions in interest rates. However, at this meeting the RBA left rates unchanged at 3%.
The yen fell against all 16 major currencies, after the governor of the Bank of Japan Governor Masaaki Shirakawa said that he will retire earlier (March 19) than planned (April 8).
The pound strengthened against the dollar after a report showed activity in the services sector in Britain unexpectedly expanded in January, indicating at the same time that the economy can avoid a recession triple. According to data seasonally adjusted purchasing managers' index for the services sector rose in January to a level of 51.5. Note that the predicted value of this indicator should have been 49.8. Note that the number of new orders received by firms in the services sector, a marked increase during the month, helped by rising demand and improving market conditions, in spite of the bad weather conditions. Meanwhile, in line with the increase of orders, the company raised the number of personnel to the maximum value in the last six months. However, despite this positive report, the pound fell sharply, reaching a minimum value at the same session.

EUR / USD: during the European session, the pair rose to a maximum of $ 1.3568

GBP / USD: during the European session the pair rose to $ 1.5803, but later fell to the lowest level session at $ 1.5727

USD / JPY: during the European session the pair rose to a new high of Y93.52


At 15:00 GMT the U.S. publication of the composite index of ISM non-manufacturing areas in January. At 17:00 GMT in Switzerland with an address by a member of the Board of the National Bank of Switzerland Fritz Zurbrugg. At 21:30 GMT the U.S. are data on changes in the volume of crude oil according to the API.

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