EUR/USD at 1.1382. Japan’s manufacturing PMI dropped to 49.1.

EUR/USD had a volatile session, fluctuating around the yesterday close throughout the day. The pair closed the Asian session at 1.1382 (unchanged).

Asian shares were mixed today. Shanghai Composite closed slightly higher, while Nikkei 225 dropped significantly. Below is mentioned the performance of major indices:

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  • Shanghai Composite closed at 3,009.53, up 0.19%.
  • Nikkei 225 plunged 3.55% finishing at 16,164.16.
  • Hang Seng was trading at 20,468.54 as of 3:24PM HKT, which represents a 1.48% decline.
  • Australia’s S&P/ASX 200 closed at 4,999.40, down 1.64%.
  • India’s Sensex was trading at 25,167.61 as of 12:56 PM IST, which is 0.69% lower than the previous close.

The Markit/Nikkei Final Japan Manufacturing Purchasing Managers Index (PMI) dropped to 49.1 in March, which is below the reading of 50.1 in February. It contracted at its fastest pace in more than three years affected by the decline in new export orders. The reading below 50 indicates a contraction in the sector.

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After this data release it is likely that Japan’s government will delay a sales tax hike planned for next year to reduce the burden on domestic demand.

On the contrary, the activity in China’s manufacturing activity surprisingly expanded in March. The official Purchasing Managers’ Index (PMI) climbed to 50.2 in March from a reading of 49 in February.

“The output and new order categories rose above the neutral 50-point level, indicating that the stimulus policies the government has implemented have begun to take hold. However, considering current conditions remain uncertain, the government needs to continue with moderate stimulus measures to reinforce market confidence” said HE Fan from Caixin.

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I’m a finance specialist with 4+ years of working experience, out of which 2 years as a SME relationship manager at Byblos Bank and 2 years as a Finance Director in a Food & Beverage sector. My academic background include BA in economics, MA in finance, CFA Level 1 and F1, F2, F3 level of ACCA. I’m also experienced in Forex/CFD trading and Forex/ Equity markets analysis.

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