Euro Falls On Disappointing Data

We have seen rather positive reports from the Eurozone and different European countries during the last few weeks, but yesterday's data was dissapointing. PMI of the Eurozone in the services sector made 51.7 points against the forecasted 51.9 points, and the index in the manufacturing industry decreased from 54.2 points to 53.

This had an immediate effect on the positions of the EUR/USD, which, from the maximum level of 1.3762, rolled down to the area of 1.3690, and this morning is traded around 1.37. Indices in the meantime, finished the trading session with an increase. The index of Great Britain, FTSE 100, increased by 0.2%, the French CAC 40 became 0.3% heavier, and the German DAX went to a minus by 0.4%. The regional STXE 600 indicator, in turn, decreased by less than 0.1% and was closed on a level of 334.78 points.

The American stock market again managed to find reasons for growth, finishing yesterday’s trading session with a moderate increase. This was mainly due to some positive statistics and corporate events. According to preliminary data of PMI from Markit Economics, the American industry grew in February, and the index raised to 56.7 from the 53.7 last month, and on the labor market, the number of primary requests for unemployment benefits decreased to 336 thousand, from 339 thousand.

Additionally, support was brought by the news from the corporate segment, where Facebook announced it's purchase of the messenger 'WhatsApp' for 19 billion dollars. In comparison, some time ago Facebook bought Instagram for just 1 billion dollars, and this purchase generated a lot of attention.

As a result, the Dow Jones Industrial Average index increased by 0.58% to the level of 16133,23 points, the S&P 500 index added 0.60% reaching the level of 1839.78 points, and the Nasdaq index grew by 0.70% to the level of 4267.55 points.

Except for the reports from Great Britain and Canada, and data on house sales in the US, so indices are going to finish this trading week around the current levels reached.