6 Mar 2014
Flash: Key data ahead - WIB
FXStreet (Guatemala) - Sean Callow, analyst at Westpac Banking Corporation ABN, explained the US dollar was undermined on most key pairs by notable downside surprises on US economic data, while broad risk appetite was little changed as discussions continued over the Ukraine but no resolution is obvious. Australia's busy data week continues with Jan retail sales and trade balance, ahead of the ECB and BoE decisions.
Key Quotes:
"US ISM non-manufacturing composite index fell from 54.0 to 51.6 in Feb (f/c 53.5), its lowest in four years. The detail showed business activity down 1.7 pts to 54.6 and new orders up slightly to 51.3. But employment plunged from 56.4, its second highest reading in the last four years, to 47.5, its lowest since the immediate aftermath of the recession, four years ago. The ISM spokesman cited a range of factors noted by respondents associated with the jobs question but weather was not one of them, although he indicated that weather disruption was mentioned by some respondents in the context of other components of the index".
"The ADP private payrolls survey rose 139k versus consensus for 155k and downwardly revised previous months to bring the series closer into line with the official payrolls measure (ADP was not a very helpful guide to the Jan official data). Numerous forecasters revised down their expectations for Friday’s headline NFP number following these two reports".
"The Bank of Canada left rates on hold at 1.0% and reiterated that the balance of risks remained within the zone for which the current stance of policy is appropriate, even as the fundamental drivers of growth and inflation in Canada continued to strengthen gradually. USD/CAD was whippy for a while but with US data soft, emerged clearly lower, about -50 pips versus late Asia, near 1.1035".
Key Quotes:
"US ISM non-manufacturing composite index fell from 54.0 to 51.6 in Feb (f/c 53.5), its lowest in four years. The detail showed business activity down 1.7 pts to 54.6 and new orders up slightly to 51.3. But employment plunged from 56.4, its second highest reading in the last four years, to 47.5, its lowest since the immediate aftermath of the recession, four years ago. The ISM spokesman cited a range of factors noted by respondents associated with the jobs question but weather was not one of them, although he indicated that weather disruption was mentioned by some respondents in the context of other components of the index".
"The ADP private payrolls survey rose 139k versus consensus for 155k and downwardly revised previous months to bring the series closer into line with the official payrolls measure (ADP was not a very helpful guide to the Jan official data). Numerous forecasters revised down their expectations for Friday’s headline NFP number following these two reports".
"The Bank of Canada left rates on hold at 1.0% and reiterated that the balance of risks remained within the zone for which the current stance of policy is appropriate, even as the fundamental drivers of growth and inflation in Canada continued to strengthen gradually. USD/CAD was whippy for a while but with US data soft, emerged clearly lower, about -50 pips versus late Asia, near 1.1035".