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At 6:00:00 AM UK CBI Survey of Distributive Trades (exp n/f, prev 57) At 4:30:00 AM UK May MO Y/Y (exp 8.7%, prev 8.0%) UK May CIPS PMI (exp 53.5, prev 53.4) UK May MO M/M (exp 0.7%, prev 0.9%) At 4:00:00 AM E-12 May Eurozone Services PMI (exp 53.8, prev 53.3) E-12 May Eurozone Composite Index (exp n/f, prev 53.2) At 3:55:00 AM Germany May PMI (exp 52.4, prev 52.0) 3:50:00 AM E-12 May French Services PMI (exp 56.0, prev 55.5) At 3:45:00 AM E-12 May Italian Services PMI (exp 53.7, prev 53.1)
The euro is trading just above 94 cents vs. the dollar, as markets wait for Services PMI from the various European nations and the Euroarea as a whole, to see whether they confirm the uptrend seen in the rises in Eurozone Manufacturing PMI. Economists anticipate the services PMI will advance in May from the April readings, with the Euroarea services PMI projected to gain to 53.8 or to as much as 54.8 in May from 53.3 in April. Better-than-expected services PMI data would likely be supportive for the euro. In the US session the single currency had been lifted by the releases of Eurozone business climate indicator and business sentiment index, both of which showed improvement. This week's key Eurozone indicators consist of Euroarea Services PMI, German Services PMI, French Services PMI, Italian Services PMI, Spanish industrial production, ECB rate announcement, German manufacturing orders, German employment, and Dutch CPI. Resistance at 94.20, 94.50 and 95.0. Support is seen at 93.90, 93.50 and 93.0.
USD/JPY is trading around 124. yen, after shooting to a session high of 124.35 in response to the Bank of Japan's attempt to circumvent yen appreciation through means of intervention early in US trading. In fact, one conclusion that could be drawn from the BoJ's series of interventions this year is that the central bank appears reluctant to let the yen breach the 123-yen figure, which also happens to be the 61.8% retracement of the move from last September 20 low of 115.75 to the February 1 high of 135.15. Japanese officials keep the USD/JPY in check on Wednesday. Japan's Ministry of Finance official Kuroda said he was carefully watching markets and would continue acting as needed, but noted there was no change in forex policy. MoF's Mizoguchi said that Japan was always prepared to take action if needed, but would continue monitoring the forex market since recent moves have been rapid.The BoJ has intervened 4 times this year to stem excessive appreciation of its currency. The first intervention of the year occurred on May 22 at 1:40 am Eastern time at the 123.60 level. The second intervention took place the next day at 5:20 am at 123.90. Then last week, the BoJ intervened at 2 occasions; once shortly after 2 am at 123, followed by another round at 10 am at 123.75. Today's intervention occurred at 8:40 am at the 123.30s. During these 4 days of intervention, the BoJ stepped in at different levels of the 123 mark. Japan Q1 MOF Corporate Survey Capital Expenditures fell 16.8% from a previous year . MoF Corporate Survey showed that big firms' sentiment index improved to -8.6 in the second quarter from the previous -22.1 According to the MoF's corporate survey, Japanese companies' profits were down 14.6% y/y and their sales were down 7.4% y/y in the January-March period. Thus the firms anticipate sales for fiscal year 2002-3 to slip 0.1%, although expecting current profits to rise 15.2%. Support at the 124-yen figure, backed by 123.70, and 123.0. Upside is capped at 124.60, 125.0 and 125.30.