UK Services PMI Falls To 2013 Lows

Today’s Economic events

Australia AIG services index 51.8 vs. 48.4 previously

New Zealand ANZ Commodity prices m/m 0.40% vs. -2.30% previously

Australia trade balance -2.94bn vs. -3.22bn

China Caixin services PMI 51.2 vs. 52.6

Spain services PMI 54.1 vs. 53.9

UK Halifax HPI m/m -1.40% vs. 0.10%

Italy services PMI 53.8 vs. 52.7

France services PMI 49.2 vs. 49.8

Germany services PMI 55.3 vs. 55.1

Eurozone final services PMI 53.3 vs. 53.0

UK services PMI 52.7 vs. 55.1

Eurozone retail sales m/m 0.40% vs. 0.10%

US Weekly unemployment claims 278k vs. 271k

US revised nonfarm productivity q/q -2.20% vs. -3.20%

Coming up

US Final services PMI

ISM non-manufacturing PMI

The Asian markets notched another day of gains with the Nikkei 225 gaining 1.28% and the Shanghai Index up 0.36% for the day. The gains came about as the previous session saw a better ADP payroll print and Oil price rally which shrugged off a massive inventory buildup of 10.4 million. The Yen was considerably weaker as USD/JPY continued to push higher following yesterday’s late declines to 113.33. For the day, The Dollar is up 0.29% against the Yen after a brief test to 114.145 saw a lower high being formed. Prices likely are decline here, with 113.335; yesterday’s low coming into focus.

The Aussie continued to surge as data from Australia today showed the services index rising to 51.8 up from 48.4 previously marking a turnaround in the services sector. Trade balance numbers showed a decline in the trade deficit which improved to $2.9 billion in January from $3.5 billion a month ago. The declines in trade deficit came on a 1.10% monthly jump in exports and a decline in imports.

AUD/USD is up 0.54% for the day with prices testing December 2015 highs near $0.734. The Kiwi on the other hand was also faring better as NZD/USD gained 0.39% for the day and marks a second day of gains following the dip to 0.6574 earlier on Monday.

In Europe, the services PMI numbers were due. Overall, the Eurozone services PMI was softly above estimates at 53.3 against forecasts of 53.0. The Euro was seen pushing higher in today’s session following a steady decline in prices over the past few days. EUR/USD briefly tested the lows of $1.083 before reversing the losses.