07, February 2014

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

Non-Manufacturing PMI in the USA rose to the 3-months maximum, while the ADP index came out worse than expectations – Non-Farm Employment Change fell to the 5-months minimum. According to the Automatic Data Processing (ADP) Non-Farm Employment Change increased by 175 thousand in January against the revised downwards 227 thousand in December; that was below expectations (the level of 185 thousand).

Employment Change is declining for the second month in a row, and its growth rate in January turned out to be the lowest for the last 5 months.

ISM Non-Manufacturing PMI grew in January to 54 points in comparison with 53 points in December, having exceeded the expectations of growth to 53.7 p. All sub indexes grew as well, except import and new export orders. However the largest growth was shown by Inventory components, Inventory Sentiment, and Prices.

The Fed representative Lockhart said on Wednesday that QE Tapering would likely be continued and would have been completed by the 4th quarter. The data coming to the publication may be weak due to weather factors.

The pound fell after weak Services PMI in the UK, which was the lowest over the last 8 months, but then the pound regained almost all its losses. Non-Manufacturing PMI descended to 58.3 p. from 58.8 p. in December against expectations of growth. The index is reduced for the third consecutive month, although it remains significantly above the level 50 p. separating growth from contraction.