Overview of the European session 05.03.2008

Overview of the European session 05.03.2008

Currencies traded unevenly in anticipation of the important data on the United States.

FOREX:

At the European bid rates of the major currencies traded against the improving dollar.

Support for the euro exchange rate provided data on activity in the services sector in the Eurozone, the corresponding index in February was 52.3 against 50.6 in January. The index coincided with the preliminary data.

Accelerating growth in activity in this area is good news in anticipation of tomorrow's decision on interest rates and the European Central Bank. The data helped the euro exchange rate return lost in early European trades.

Also supporting the euro exchange rate had data on retail sales in the euro. Retail sales in January rose by 0.4%, after falling to 0.1% in January. At the same time the annual figure has fallen short of projections and showed a decrease of 0.1%, while the expected increase of 0.2%. However, the annual rate for December was revised for the better with -1,8% to -2%.

Pound declined more significantly against the backdrop of sales in the cross-rates, as well as expectations of weak data on the UK. Despite this, the course has returned part of the lost position after the publication of unexpectedly strong data on activity in the service sector in Britain, which reduced the likelihood that the Bank of England will reduce interest rates.

Procurement managers index for the services sector rose unexpectedly in February and was 54.0 against 52.5 in January. Economists forecast the index would fall to 52.0, and to show a slowdown in this area. However, the data have not lived pessimistic forecasts and supported the British currency.

Together with data on the increase in activity in the manufacturing sector, which were submitted on Monday, the data will be good news for the Bank of England, who read the decision tomorrow on the interest rate.

At the time of writing steam euro / dollar CIOC have in the region of 1.5190. Para pound / dollar level of 1.9785 at the CIOC. Para dollar / CIOC franc at around 1.0400. Para dollar / yen level from 103.85 CIOC.

Today at the American session 18:15 Moscow time ADP is expected to publish data on the number of jobs in the private sector for February. According to the forecasts of economists, it is expected that the number of jobs will be 10000 to 126000 in January. These rarely coincide with the official data on jobs, but in recent times the market reaction to the data is strong.

At 18:00 Moscow time will be submitted no less important index of business activity in the services sector for February, it is expected that the index rose, but remained below 50,0, indicating a slowdown in the service sector, which is the dominant economy in the United States. At 22:00 Moscow time the Fed will report "Beige Book" as the U.S. economy.

At the American average trading session on the range is between EURUSD pair levels 1.5150 - 1.5210.

Para euro against the dollar in the European session CIOC threads.

Indicator in the neutral zone, the American pair session will be traded in a range of possible growth in the weak data on the United States.

At the American middle session trading range for pair GBPUSD between levels is 1.9720 - 1.9810.

Para pound against the dollar in the European session CIOC with decreasing.

Indicator purchases in the zone, the American pair session will be traded in a range of possible growth in the weak data on the United States.

At the session of the average American shopping for a pair USDCHF range between levels is 1.0370 - 1.0430.

Para dollar / franc in the European session CIOC improving.

Indicator in the neutral zone, the American pair session will be traded in the range may decline if weak data on the United States.

At the American average trading session on the range is between the USDJPY pair levels 103.25 - 103.95.

Para dollar / yen in the European session CIOC improving.

Indicator in the neutral zone, the American pair session will be traded in the range may decline if weak data on the United States.