US Dollar Getting Stronger on Firm Data

Market Reviews

The euro is falling against the dollar, as demand for the American currency remains high. Additional pressure on the European single currency was provided by weak data on production activity in the Eurozone, and strong data on the labor market could not provide support for the currency. German Manufacturing PMI fell to 60.6 in February. Eurozone Manufacturing PMI declined to 58.6, but was above the forecast of 58.5 points. Eurozone unemployment fell to its lowest level in more than nine years in January thanks to strong economic growth. The Eurostat said the unemployment rate in the Eurozone was 8.6% in January.

The British pound is consolidating against the dollar amid mixed data on business activity in the manufacturing sector and lending in the UK. UK PMI manufacturing fell to 55.2 in February, down from 55.3 but beat forecast of 55.0. M4 money supply increased 1.5% mom in January. Mortgage approvals grew to 67k in January.

US dollar stays firm after recent data. Initial jobless claims fell by 10k to 210k (the lowest level in nearly five decades since December 1969). Continuing claims increased by 57k to 1.93m in the week ended February 17. Personal income grew by 0.4% in January, above expectation of 0.3%. Personal spending rose by 0.2%, in line with expectation. Headline PCE was unchanged at 1.7% yoy, core PCE at 1.5% yoy.

The Caixin China PMI manufacturing rose to 51.6 in February, above expectation of 51.3. Japanese capital spending increased by 4.3% in Q4, above expectation of 3.0%. PMI manufacturing rose to 54.1 in February. Consumer confidence fell to 44.3 in February. Australia private capital expenditure fell by 0.2% in Q4, comparing to expectation of 1.0% growth.