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Forex: Euro Rose to 1.0890 on EZ Retail Sales, GBPUSD Fell to 1.4040 on Weak UK Services PMI

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EURUSD: The euro made modest gains in Europe to rise to rise to 1.0892 from 1.0865 ( 27 pips) after the eurozone retail sales rose more than expected in January to 0.4% m/m versus the median forecast of 0.1% , 2.0% y/y versus the forecast of 1.3%. The previous month of December sales were revised upward to 0.6% from 0.3% m/m and 2.1% y/y from 1.4%. Offers seen at 1.0900 & 1.0920. The range is realtively narrow for EURUSD holding at the 1.0870 levels. The market awaits for the US ISM and Factory orders in the NY session.

GBPUSD: Sterling initially rose to the high of 1.4105 in early Europe before it was met with profit-taking sellers which dipped to 1.4030 (-75 pips). The rebound to 1.4080 was once again met with selling following the weaker than expected UK Feb Services PMI which fell to 52.7 versus the forecast of 55.1 compared to 55.6 in January. Previous dissapointing reports of UK manufacturing and construction suggest that the UK GDP may slow down to 0.3% from 0.5% this quarter amid the Brexit concerns.

USDJPY: The yen weakened on the chart showing a rise of USDJPY from 113.20 to 114.27 ( 107 pips on the intraday chart) with Japanese officials reiterating their dovish stance to weaken the yen verbally. BOJ Governor Kuroda said they will adjust policy without hesitation if needed. Japan Feb PMI services 51.2, slowest expansion in 7 months. (Jan 52.4). European range sideways High114.27 Low 113.80. 

AUDUSD: The australian dollar made steady gains from the prior Asian session low of 0.7280 to the European high of 0.7335 ( 55 pips) gaining steam after the better than expected Australian Trade Balance. The Jan Deficit narrowed to A$ 2.937 billion versus the A$ 3.1 billion forecast. Buoyant Asian equities and lower USDCNY fixing was supportive. The break above the 200 DMA of 0.7256 is suggestive that the long-term downtrend has been exhausted. Resistance seen at 0.7340, if broken targets 0.7380-90. Weaker yen pushed AUDUSD higher.



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