London Session Recap – March 24, 2014

  • French Flash data – Manufacturing PMI: 51.9 vs. 49.8 forecast; Services PMI 51.4 vs. 47.8 forecast
  • German Flash data – Manufacturing PMI: 53.8 vs. 54.5 forecast; Services PMI 54.0 vs. 55.5 forecast
  • European Flash data – Manufacturing PMI inline with forecast at 53.0; Services PMI 52.4 vs. 52.5 forecast

It was all about Flash data today as European countries released their Flash Manufacturing and Services PMI data.  The good news is that France ticked higher for the second time in three reads; a rarity over the past year.  The bad news is that overall, Europe’s data ticked lower than forecasts and previous reads, including their largest economy, Germany.  This sparked most euro pairs to trade lower after the release, bringing the euro down since the London session open:

EUR/USD is down 33 pips (-0.23%) to 1.3765, EUR/JPY is down 38 pips (-0.26%) to 141.01, and EUR/GBP is down 22 pips (-0.26%) to .8347.

The Swiss franc was also on the move thanks to comments from the International Monetary Fund that the SNB should us negative rates if the franc remains under pressure.  The franc is seeing bigger than usual volatility after the London open:

USD/CHF is up 29 pips (+0.32%) to .8861, EUR/CHF is up 11 pips (+0.09%) to 1.2199, and GBP/CHF is up 50 pips (+0.34%) to 1.4613.

The rest of the Monday session is near empty of any economic data points with the exception of the U.S. Flash manufacturing PMI report at 1:45 pm GMT.  Like expectations for its European counterpart, forecasts are for a lower than previous read of 57.1. It’s a low tier report, but another weak PMI number from around the globe (China also printed weak PMI numbers) could spark risk aversion moves in the currency and broad markets. Stay frosty!

See also:

Asian Session Recap

U.S. Session Recap

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