European session: the euro recovered losses incurred in early trading

Data

01:00 China Manufacturing PMI March 50.1 51.6 50.9

01:45 China HSBC Manufacturing PMI (Finally) March 51.7 51.7 51.6

09:00 United Kingdom Bank holiday

09:00 France Bank holiday

09:00 Germany Bank holiday

09:00 Switzerland Bank holiday

The yen rose against the dollar while still achieving the highest level in almost four weeks after the economic data from Japan, China and South Korea were lower than expected, which led to higher demand for assets seekers. As shown by the report of the Bank of Japan Tankan, sentiment among large manufacturers improved in the first quarter, but remain in negative territory. According to the data, the index of activity in the sector of large manufacturers rose to -8, compared to -12 in the 4th quarter, while economists forecast a rise to -7. Meanwhile, the report showed that the index of activity in the non-manufacturing sector rose in the first quarter to level 6 to 4 in the last quarter. Note that the index is the difference between the percentage of companies who said business conditions are bad, the share of those who think that they are favorable. The key sentiment index of large manufacturers is in the red six consecutive quarters. Values ​​below zero indicate that the recovery of economic growth after the recession is not stuck in the past six years.

The single currency rose above $ 1.2800 in anticipation of the ECB meeting this week. Analysts expect the European Central Bank President Mario Draghi and his colleagues will leave rates at a record low 0.75%. The decision will be announced on April 4. Adding that many are also waiting for tomorrow's report on unemployment in the euro area. It is expected that the figure for February will rise to a record high of 12%. Additionally tomorrow will be published index of business activity in the manufacturing sector, which is likely to confirm the reduction of the industry for 20 consecutive months. Meanwhile, experts say that, while the recent fall in the euro may provide additional support for the manufacturing sector and the export sector eurozone events in Cyprus may, in turn, undermine confidence among companies and households in the near future. Thus, the process of economic recovery is likely to remain too slow in the coming months, if it ever will.

EUR / USD: during the European session, the pair rose to $ 1.2825

GBP / USD: during the European session, the pair rose to $ 1.5218, but later fell to $ 1.5185

USD / JPY: during the European session the pair fell to Y93.28, and then rose to the level of Y93.86

At 14:00 GMT the U.S. ISM manufacturing index will be released in March.