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Brazil Services Sector Shrinks At Record Pace On Covid-19 Disruption

Brazil’s service sector shrunk at the fastest pace in the survey’s 13-year history in March as businesses were shut and demand shrunk due to the coronavirus, or Covid-19, outbreak, survey data from IHS Markit showed on Friday. The headline seasonally adjusted IHS Markit Brazil Services Business Activity Index plummeted by nearly 16 points to 34.5 from 50.4 in February. A reading below 50 suggests contraction in activity. New work fell at the fastest pace since the survey began in March 2007, thanks to cancelled orders and business shutdowns. Export demand dropped at a rapid rate that exceeded the fall in total demand, mainly due to containment measures adopted globally to slow the spread of the Covid-19 pandemic. Employment fell at the fastest rate since October 2016, as businesses shed jobs in a bid to reduce operating costs amid shutdowns. Average costs increased sharply in March, but the overall rate of input price inflation was the slowest since last November. A strong US dollar and a corresponding increase in the price of imported items, pushed up purchasing costs. Charge inflation remained modest, but was the fastest in three months. Business confidence eroded sharply with expectations being the weakest since the survey…

U.S. Dollar Higher Amid Coronavirus Fears

The U.S. dollar firmed against its major counterparts in the European session on Friday, as investors sought safe-haven assets following grim Eurozone business survey, as well as continued COVID-19 concerns after virus cases exceeded one million. The IHS Markit eurozone services purchasing managers index slumped to a reading of 26.4 in March from 52.6 in February, the worst-ever reading in the history of the series, as the covid-19 pandemic and associated measures taken to contain the outbreak through Europe weighed heavily on business performance. The number of confirmed coronavirus cases crossed the 1 million mark globally with a death toll of 53,030, according to the new tally from Johns Hopkins University. Around 1,015,403 people have been diagnosed with the novel coronavirus across the world. Investors didn’t react to the disappointing U.S. jobs data for March. Data from the Labor Department showed that the U.S. employment fell much more than expected in the month of March. The report said employment plunged by 701,000 jobs in March after jumping by an upwardly revised 275,000 jobs in February. Economists had expected employment to slump by 100,000 jobs compared to the addition of 273,000 jobs originally reported for the previous month. With the much…

*ISM U.S. Non-Manufacturing Index Drops To 52.5 In March

ISM U.S. Non-Manufacturing Index Drops To 52.5 In March The material has been provided by InstaForex Company – www.instaforex.com…

U.S. Employment Plunges By 701,000 Jobs In March, Much More Than Expected

Employment in the U.S. fell much more than expected in the month of March, according to a report released by the Labor Department on Friday. The report said employment plunged by 701,000 jobs in March after jumping by an upwardly revised 275,000 jobs in February. Economists had expected employment to slump by 100,000 jobs compared to the addition of 273,000 jobs originally reported for the previous month. The much bigger than expected decrease came as employment in the leisure and hospitality sector plummeted by 459,000 jobs, mainly in food services and drinking places. The Labor Department said notable declines also occurred in health care and social assistance, professional and business services, retail trade, and construction. With the much bigger than expected drop in employment, the unemployment rate surged up to 4.4 percent in March from 3.5 percent in February. The unemployment rate had been expected to climb to 3.8 percent. “The 701,000 plunge in non-farm payrolls in March, which is already close to the worst monthly declines seen during the Global Financial Crisis, suggests the coronavirus pandemic started to decimate economic activity even sooner than we had thought,” said Andrew Hunter, Senior U.S. Economist at Capital Economics. He…

U.S. Employment Plunges Much More Than Expected In March

Employment in the U.S. fell much more than expected in the month of March, according to a report released by the Labor Department on Friday. The report said employment plunged by 701,000 jobs in March after jumping by an upwardly revised 275,000 jobs in February. Economists had expected employment to slump by 100,000 jobs compared to the addition of 273,000 jobs originally reported for the previous month. With the much bigger than expected drop in employment, the unemployment rate surged up to 4.4 percent in March from 3.5 percent in February. The unemployment rate had been expected to climb to 3.8 percent. The material has been provided by InstaForex Company – www.instaforex.com…

Dollar Ticks Up Following U.S. Jobs Data

Following the release of U.S. nonfarm payrolls data for March at 8:30 am ET Friday, the greenback edged up against its major counterparts. The greenback was trading at 108.50 against the yen, 0.9781 against the franc, 1.2256 against the pound and 1.0780 against the euro around 8:31 am ET. The material has been provided by InstaForex Company – www.instaforex.com…

Sweden Services Sector Activity Weakest Since 2012

Sweden’s services sector contracted at the fastest rate in 15 years to hit its lowest level since 2012, survey data from Swedbank and the logistics association SILF showed on Wednesday. The Purchasing Managers’ Index for the services sector decreased to 46.9 in March from 56.4 in February.Any reading below 50 suggests contraction in the sector. The latest monthly decline was the largest in the survey’s fifteen-year history and the reading was the lowest since 2012. The order index and production sub-indices recorded the biggest declines in March followed by employment. The sub-index for the suppliers’ delivery times increased for the second straight month, reaching a record high. “Normally, rising delivery times mean increased demand pressure, but this time it is rather a lack of supply that contributes to longer delivery times partly because of the corona virus and closed borders,” Swedbank analyst Jorgen Kennemar said. Service sector companies plans contracted in March, which indicates a darker economic outlook in the future. The Composite PMI, which combines manufacturing and services, fell to 45.9 in March from 55.4 in the previous month. The material has been provided by InstaForex Company – www.instaforex.com…

Pound Falls Sharply As U.K. Services PMI Shrinks To Record Low

The pound moved down against its major counterparts in the European session on Friday, as coronavirus cases exceeded one million worldwide and U.K. service sector activity slumped in March amid business shutdowns and order cancellations in response to the coronavirus pandemic. Survey data from IHS Markit/CIPS showed that the U.K. services PMI fell to 34.5 in March from 53.2 in February. This was also weaker than the flash estimate of 35.7. This reading was the lowest since the survey began in July 1996. The composite output index dropped to 36.0 in March from 53.0 in February. The flash score was 37.1. Weak Eurozone purchasing manager data rekindled recession concerns. The IHS Markit eurozone services purchasing managers index slumped to a reading of 26.4 in March from 52.6 in February, the worst-ever reading in the history of the series, as the covid-19 pandemic and associated measures taken to contain the outbreak through Europe weighed heavily on business performance. The pound fell to 132.95 against the yen, from a high of 134.09 set at 7:00 pm ET. The next likely support for the pound is seen around the 127.00 level. The latest survey from Jibun Bank showed that the services…

Spain Industrial Production Decline Slows In February

Spain’s industrial production fell at a softer pace in February, data from the statistical office INE showed on Friday. Industrial production declined a calendar adjusted 1.3 percent annually in February, following a 2.2 percent fall in January. Energy output had the biggest decline of 4.1 percent annually in February and non-durable consumer goods decreased 1.2 percent. Meanwhile, durable consumer goods remained unchanged. On an unadjusted basis, industrial output rose 0.1 percent in February, after a 3.8 percent decline in the preceding month. On a month-on-month basis, industrial production remained unchanged in February. The material has been provided by InstaForex Company – www.instaforex.com…

Eurozone Private Sector Logs Record Fall In March

The euro area private sector logged its biggest monthly fall on record in March as the coronavirus disease, or covid-19, pandemic impacted heavily on economic activity, final data from IHS Markit showed Friday. The final composite output index fell sharply to 29.7 in March from 51.6 in February. This was also weaker than the flash estimate of 31.4. Both services and manufacturing sectors recorded notable declines in output in March. Manufacturers posted the sharpest fall in production since April 2009. At the same time, services activity declined at a record pace. The final services Purchasing Managers’ Index plunged to a record low of 26.4 from 52.6 a month ago. The reading was also below the preliminary estimate of 28.4. The covid-19 pandemic and associated measures taken to contain the outbreak through Europe weighed heavily on business performance. Chris Williamson, chief business economist at IHS Markit said, the data indicate that the eurozone economy is already contracting at an annualized rate approaching 10 percent, with worse inevitably to come in the near future. Incoming new work deteriorated to the greatest extent in the 22-year survey history. Further, confidence about the future was the lowest recorded by the survey since…