Dollar outruns the Rivals as euro flags ahead of ECB meeting

Daily Update - 5th March 2019

Yesterday’s Market

• EUR Sentix Investor Confidence
• GBP Markit Construction PM

Yesterday's Explained

To start with a Semi-Busy week Euro Zone released their Sentix Investor Confidence which resulted positive giving us an indication of the current European Economy and their future investment plans. GBP Construction PM released showed business conditions in the UK construction sector have slowed down. 

The currency markets are relatively quiet though. Euro is trading as the weakest one yesterday despite better than expected investor confidence data.

Today’s Market

• EUR Markit Services
• GBP Markit Services PMI & Bank of England Governor Speech
• US ISM Non-manufacturing PMI

Todays Focus

From Eurozone, it’s a busier day ahead on the data front. Key stats due out of the Eurozone include finalized February service sector PMI numbers out of France, Germany, and the Eurozone. Spain and Italy’s February services PMIs are also due out ahead of the finalized figures. Outside of the numbers, sentiment towards ECB policy has pinned the EUR back and will likely continue to do so ahead of Thursday’s press conference. Progress on trade talks and geopolitical risk across the region will also continue to be factors to consider. The Italian coalition government sees the risk of a snap election on the rise. At a time when the EU’s 3rdlargest economy is struggling, there is more for the ECB to be fretting over.

From UK , February service sector PMI figures will provide the Pound with direction later this morning. The manufacturing sector reported slower growth, with the construction sector contracting in February. Service sector activity will need to come in better than forecast for the Pound to avoid a pullback. The services sector is forecasted to contract in February.Outside of the numbers, the BoE will release its FPC statement that is not expected to deliver too many surprises. Brexit discussions will remain the key driver barring initial responses to the stats and FPC statement.

From US, The ISM non-Manufacturing PMI, scheduled for release later today, will provide direction. Forecasts are Dollar positive, though much will depend on risk sentiment through the day and, in particular, chatter from Capitol Hill. February’s finalized Markit Service sector PMI,  by contrast, will unlikely influence. The Markit PMI will precede the ISM numbers.