Dollar continues to fall
The EUR/USD broke through the 1.3500 mark last night from positive PMI Service numbers, posting 57.3 verses 57.1 forecasted. The PMI is the gauge for the overall performance of the German service sector. The Services PMI interviews German executives on the status of sales, employment, and their outlook. Because the performance of the German service sector is extremely consistent over time, services do not impact final GDP figures as much as the more volatile figure on the manufacturing sector. For this reason Services PMI usually causes little market movement, but last night, Euro bulls needed only a little prompting to move higher. The rally which has a current high of 1.3553 was finally tempered by less than stellar Euro-Zone Retail sales that rose by only 0.2%, verses the expected 0.5%. In addition to the European front, the Japanese Yen has made its own mark against the US Dollar and the Euro. Posting impressive gains to 121.11 verses the Dollar and 163.89 verses the Euro the Yen has rallied in lock step with the Shanghai index which staged a massive turnaround, regaining more than 300 points after dropping to 3400 in midday trade only. to end up 96 points for the day. Market rumors that Chinese government and ministry officials are planning to discuss how to stabilize the market through governmental controls have helped the turnaround. Currently the EUR/USD is trading at 1.3528 with the USD/JPY at 121.32 and finally the EUR/JPY at 164.15.
