Despite Solid Services Data Set, Euro Reaction Muted Pre-ECB Decision

By David Schutz,

THE TAKEAWAY: Euro-area March PMI services rise -> PMI composite better than expected -> Euro remains in tight range ahead of ECB decision

The Euro-area services sector experienced positive results overall in March. The data failed to move markets, though, as focused remained on the upcoming European Central Bank rate decision later in the day. European powerhouse Germany saw a strong reading which came it at 52.1 versus the expected 51.8.

France, Italy, and Spain saw similar gains, with “core” Eurozone countries (Germany and France) staying above the critical mark of 50 which differentiates between expanding and contracting market.

The Euro was largely unmoved by today’s release, as market focus remained on the ECB’s upcoming rate decision. The central bank is expected to leave its benchmark rate unchanged at 1.00%.
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Original Article: http://www.dailyfx.com/forex/market_alert/2012/04/04/Despite_Solid_Services_Data_Set_Euro_Reaction_Muted_pre-ECB_Decision_.html

DailyFX is the forex news and research arm of FXCM (NYSE: FXCM), which provides currency trading and brokerage services and is an advertiser on TheStreet websites. Any opinions, news, research, analyses, prices, or other information is provided as general market commentary, and does not constitute investment advice. Dailyfx will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information. Currency trading involves significant risk of loss. Individual authors may hold positions in the currencies discussed in the article.