The British pound hit a three week low versus the US dollar after the Services PMI data disappointed on Wednesday. The sterling dropped to $1.52506, stepping back on the previous days’ optimism for the UK economic growth. The euro also suffered on Wednesday, reaching an eleven year low of $1.10607 as it awaits the ECB policy meeting at 13:30 GMT today.
Australian retail sales rose by 0.4% in January as expected, whereas Australia’s balance of goods and services was reported at a $980 million trade deficit. The RBA Deputy Governor Philip Lowe stated that the Australian dollar is still too high but it is much closer to the appropriate level. The RBA will not hesitate to lower interest rates if necessary.
The US dollar gained ground on Wednesday, supported by strong private sector jobs growth, and reached its highest level since September of 2003.The ADP Non-Farm Employment data showed a gain of 221K private sector jobs. This spreads a positive vibe for Friday’s NFP report. The positive US data did not give much room for the safe-haven metal, gold, to move away from the $1200 level.