Throughout the European morning, the USD-index extended on yesterday’s gains to erase the entire losses from Friday’s dismal Nonfarm Payrolls report, with US 10y yields above 1.90% said to have stoked appeal in the greenback. As such, USD strength offset the better-than-expected UK services PMI (58.9 vs Exp. 57.0), leading GBP/USD to trade marginally higher throughout the day. Moreover, despite several Eurozone Services PMI figures topping estimates and Eurozone PPI (0.5% vs. Exp. 0.1%) posting a sharp beat on expectations, EUR trended lower against major pairs, with EUR/USD drifting further away from the 1.1000 level to languish firmly below 1.0900, while EUR/GBP was seen below 0.7300 for most of the European morning.
Looking ahead, tomorrow sees US DoE Crude Oil Inventories, release of Fed March 17-18 FOMC meeting minutes and the BoJ’s Annual Rise in Monetary Base, as well as a host of central bank speakers, with ECB’s Linde and Noyer, Fed’s Powell and Dudley all due on the slate. Furthermore, BoJ’s Kuroda is due to hold a press conference alongside the BoJ policy statement, while Greek PM Tsipras is meeting his Russian counterpart Putin in Moscow.
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