Expert Analysis of Today's Market

• The dollar fell modestly against most major currencies on Wednesday following the Institute for Supply Management’s release of weaker-than-expected US services sector data. Markets await Friday’s important US non-farm payrolls report. The employment report will determine the dollar’s short-term direction. The ADP employment report showed 106K private jobs were created last month.


• The EUR/USD is at critical resistance. If the resistance was broken, the pair would move higher.

Financial and Economic News and Comments

US & Canada

• The Institute for Supply Management’s non-manufacturing business index in March fell a more-than-expected 52.4, the lowest in almost 4 years, from February’s 54.3. The ISM index indicates low to moderate growth for the US services sector in the coming months. However, the risk for a more serious slowdown is possible.

• US factory orders rose a less-than-expected 1.0% m/m in February, after a 5.7% m/m drop in January, which was the largest in more than 6 years, the US Commerce Department said. Excluding transportation equipment, orders fell 0.4% m/m in February following a 2.5% m/m decrease in January.

Europe

• Royal Bank of Scotland Group Plc’s European services index fell marginally to 57.4 in March from February’s 57.5. The index indicates continued strong expansion for the eurozone services sector. Services growth accelerated in Germany and France. Unemployment in the EMU fell to a record low and consumer confidence rose to a 6-year high.


• ECB Governing Council member Klaus Liebscher said eurozone growth is robust and monetary policy is on the accommodative side.


• German manufacturing orders, adjusted for seasonal swings and inflation, rose a stronger-than-expected 3.9% m/m in February following January’s 0.3% m/m decline, the Economy and Technology Ministry said.


• UK services expansion accelerated in March, registering the 48th consecutive month of expansion. The index of services sector activity showed a reading of 57.6 in March, up from 57.4 the previous month, the Chartered Institute of Purchasing and Supply and Royal Bank of Scotland Group Plc said.


• UK consumer confidence rose 3 points from February to 88, the highest in 4 months in March, on greater optimism about jobs and the economy, Nationwide Building Society said.

Asia-Pacific

• The Reserve Bank of Australia kept its benchmark interest rate unchanged at a 6-year high, at 6.25% for a fourth straight meeting. The Australian dollar initially fell but recovered most of its losses on speculation that the RBA will increase interest rates at its next meeting.



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