Friday, April 4, 2014

USD Up, Euro Fell, GBP Down

USD rose on hopes for upbeat jobs data. EUR fell as the ECB sounded dovish. GBP fell with services sector weakness.

The USD rose as on expectations for an upbeat set of monthly jobs data. Companies likely added 200,000 jobs to nonfarm payrolls in March, according to a Bloomberg poll. This is the largest since November 2013. February’s final read was 175,000.

The EUR fell after the ECB came out of its policy meeting sounding dovish. President Mario Draghi dismissed fears of deflation, but noted the ECB is keeping its eye trained on prices, and policymakers stand ready to take on “unconventional measures… to cope with the risk of a too-prolonged period of low inflation”. The ECB kept rates steady at 0.25%.

The sterling ticked down on reports of an unexpected slowdown in Britain’s services sector. Markit’s PMI for services fell to 57.6 in March, missing analysts’ forecasts. Meanwhile, Bank of England Governor Mark Carney said the “slack in the labour market” needs to be reduced before any rate hike takes place.