Archived IMT (2011.04.05)

UK remains in focus today with this mornings release of UK March services PMI, expected at 52.6, unchanged from February. Given that both construction and manufacturing PMI data were down from February, todays services could well fall short. Since the services sector makes up over 70% of UK GDP, todays figure is to play a key role in Thursdays Bank of England interest rate. Accordingly, we could see GBPs upside relatively limited. Bear in mind that jus earlier, both German and Eurozone PMI did come in better than expected at 60.1 and 57.2, but failed to prevent EURUSD from holding above $1.42. EURGBP failed to take out the key 0.8850 resistance, now holding at the trend line support of 0.8780. GBPUSD resting on well above $1.61, but will need an upside data suprise to retest and break above 1.6180s, a break of which could call up 1.6230s. By KM- AshrafLaidi.com contributing staff