Forex: EUR/USD hits daily low after ISM

The dollar strengthened versus most competitors during the New York session after a report showed the services sector in the US improved more than expected in February. The ISM non-manufacturing PMI rose to 56 versus 55 expected, printing its highest level in a year.

EUR/USD fell to a fresh daily low of 1.3011 after the data and was last trading around 1.3015, a few pips below its opening price.

From a technical view, Valeria Bednarik, chief analyst at FXstreet.com recently commented that even though the pair might extend its recovery above 1.3080, the wider picture remains bearish for EUR/USD. Bednarik locates next support levels at 1.3010, 1.2980 and 1.2940, while she sees resistances at 1.3080, 1.3220 and 1.3260.

Mar 5, 2013

Forex: GBP/USD drops on US ISM non-manufacturing PMI

The GBP/USD couldn't hold any longer and fell from 1.5150/60 zone on the release of US ISM non-manufacturing PMI data as the greenback found more demand. The ISM non-manufacturing PMI rose from 55.2 to 56.0 in February, instead of dropping to 55.0 as expected, surprising investors positively.

Fundamental Afternoon Wrap: Euro PMIs and Central Bank meets in focus

This afternoon institutional report reflects market mood today, with focus falling on the key central bank meetings later in the week and the stablising European services PMIs today. There is a feeling that absent sudden Italian developments, EUR/USD may struggle to decline much further, while in the UK the shock of Manufacturing PMIs was offset by today's numbers.