Forex news from the European morning session - 5 March 2019
Headlines:
- Eurozone January retail sales +1.3% vs +1.3% m/m expected
- UK February services PMI 51.3 vs 49.9 expected
- Italy Q4 final GDP -0.1% vs -0.2% q/q prelim
- Eurozone February final services PMI 52.8 vs 52.3 prelim
- Germany February final services PMI 55.3 vs 55.1 prelim
- France February final services PMI 50.2 vs 49.8 prelim
- Italy February services PMI 50.4 vs 49.5 expected
- Spain February services PMI 54.5 vs 54.3 expected
- BOJ said to discuss downgrading its views of output, exports
- Switzerland February CPI +0.4% vs +0.4% m/m expected
- China said to have blocked canola shipments from Canada's Richardson International
- China state council researcher says that there is no change in yuan policy
Markets:
- USD leads, NZD lags on the day
- European equities mixed; E-minis up 0.1%
- US 10-year yields up 1.5 bps to 2.737%
- Gold flat at $1,286.12
- WTI up 0.3% to $56.72
- Bitcoin up 1.0% to $3,736
It was another session bereft of key headlines as currencies settled on a theme of minor dollar strength since Asian trading. Equities are rather muted, with European stocks trading a little lower now but overall that is offering little direction for traders to work with ahead of North American trading.
Risk currencies are on the back foot with the aussie and kiwi already hurt by poor Chinese data from Asian trading. NZD/USD continues to trade at the lows around 0.6790-00 throughout the European morning with little action of note.
The loonie remains pressured as buyers in USD/CAD are contending with swing region resistance around 1.3340-60 after a rebound off key trendline support in last week's trading.
The pound was a notable mover on the session with cable rising from 1.3170 levels to 1.3190 following a more solid UK services PMI print. Gains extended to 1.3199 but that was short-lived as price fell back to 1.3155 before settling around 1.3170 currently.
The euro remains soft in trading with EUR/USD trading to a low of 1.1316 early on but managed a recovery to 1.1330 levels now after Eurozone PMI data collectively showed some signs of a recovery, helping to hint at the possibility that the slowdown in the economy is now behind the region.
There wasn't much else of note in the session as we gear towards US trading, where plenty of focus will be on how equities respond to the mixed/sluggish start to the week.
