Review:

  • Service sector growth eases to five-month low in February at 53.3 vs 54.5
  • UK Construction PMI Modest rise in February at 52.5 vs 52.2
  • UK February manufacturing PMI records solid growth of output and new orders at 54.6 in February
  • UK Consumer Confidence drops one point in February to -6 vs -5

  Thoughts for the week ahead:

  • Halifax HPI forecast 0.4% vs -0.9%
  • Hammond to unveil UK budget since Brexit vote on Wednesday (Mar08)
  • Manufacturing production forecast -0.6% vs 2.1%
  • Trade balance forecast -11.1B vs -10.9B

On Eur, ECB Governing Council meeting grabs the attention on Thursday (Mar 09).

The Eur has been enjoying the near term strength erases the five-month descending trendline. The cross rose seven sessions out of nine close above all the daily moving averages and 20Wsma aswell.

The cross resistance zone seems between 0.8700 and 0.8725 above this 0.8770 and 0.8815 exist.Jan 2017 high seems at 0.8850.

Alternatively, support finds at 0.8590, 0.8520/0.8500 and 0.8450

Ahead of the UK budget and ECB meeting the cross might face strong resistance between 0.8700 and 0.8750. Sustain above these might shoot to 0.88 and 0.8850 where we can expect a medium-term top.