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The pound found buyers before and after the U.K.’s services PMI report was released. The Loonie, meanwhile, was initially mixed for the session but found sellers across the board late into the session when Trump began tweeting.

  • Italian services PMI: 55.0 vs. 57.3 expected, 57.7 previous
  • French final services PMI: 57.4 vs. no change from 57.9 expected
  • German final services PMI: unchanged at 55.3 as expected
  • Euro Zone final services PMI: 56.2 vs. no change from 56.7 expected
  • Sentix Euro Zone investor confidence: 24.0 vs. 31.1 expected, 31.9 previous
  • U.K. services PMI: 54.5 vs. 53.3 expected, 53.0 previous
  • Euro Zone retail sales m/m: -0.1% vs. 0.3% expected, -1.0% previous

Major Events/Reports:

The Donald tweets (and CAD crumbles)

It looks like Trump’s tweets are now market-moving events. Anyhow, Trump tweeted the following earlier, which apparently caused the Loonie to tank across the board late into the session.

U.K. services PMI

Markit released the U.K.’s services PMI report earlier today. And according to the report, the U.K.’s services PMI reading jumped from 53.0 to a four-month high of 54.5 in February, which is a much better reading compared to the 53.3 consensus.

Commentary from Markit noted that the better-than-expected reading was “supported by the fastest rise in new work since May 2017.”

Moreover, “Employment numbers were expanded to the largest degree since last September, driven by strongerthan-expected sales growth and subsequent efforts to expand business capacity.”

Even better, survey respondents also reported higher staff salaries.

Despite giving higher salaries, however, Markit found that the “latest data indicated a moderation in input price inflation to its lowest since August 2016.”

Worse (for CPI and rate hike expectations), “prices charged by service sector companies increased at the weakest rate for six months.”

Even so, Markit pointed out that prices pressures “remain stubbornly elevated.”

As such, Chris Williamson, Chief Business Economist at IHS Markit, concluded that:

“With Bank of England policymakers sounding hawkish even following the January fall in the PMI to a one-and-a-half year low, the February upturn in the surveys surely leaves a May rate hike very much in play.”

Risk appetite revived in Europe

Risk aversion dominated in Asia but that wasn’t the case in Europe since most of the major European equity indices were in positive territory for the day, despite the Italian elections likely resulting in a hung Parliament.

And market analysts say that European equities were underpinned mainly by higher commodity prices, which were able to offset the jitters caused by the Italian elections.

  • The pan-European FTSEurofirst 300 was up by 0.46% to 1,443.82
  • Germany’s DAX was up by 0.49% to 11,972.08
  • The blue-chip Euro Stoxx 50 was up by 0.25% to 3,335.50

Major Market Mover(s):


The pound found buyers right from the get-go. There were no positive catalysts, but preemptive positioning ahead of the U.K.’s services PMI report is a possibility.

And when the U.K.’s services report was revealed to be better-than-expected, the pound found even more buyers and climbed higher still, ending up as the best-performing currency of the morning London session.

GBP/USD was up by 42 pips (+0.31%) to 1.3811, GBP/JPY was up by 73 pips (+0.50%) to 145.85, GBP/CAD was up by 93 pips (+0.53%) to 1.7867


The Loonie initially had a mixed performance but began getting swamped by sellers across the board late into the session when Trump apparently woke up and began tweeting while singling out Canada.

USD/CAD was up by 28 pips (+0.22%) to 1.2936, NZD/CAD was up by 42 pips (+0.45%) to 0.9345, AUD/CAD was up by 30 pips (+0.30%) to 1.0015


Watch Out For:

  • 2:45 pm GMT: Markit’s final U.S. services PMI (no change from 55.9 expected)
  • 3:00 pm GMT: ISM’s U.S. non-manufacturing PMI (58.5 expected, 59.9 previous)
  • 6:15 pm GMT: U.S. Fed Governor Randal Quarles is scheduled to speak