PMIs lend a hand as GBP, EUR favoured.........>

FOREX: PMIs lend a hand as GBP, EUR favoured

-Despite this morning's PMI releases being final reads, they provided some

impetus for markets to bid up both GBP and EUR as the services sector fared

better than expected in Italy, Germany and the UK (France was inline). As such,

EUR/USD is staging a decent test on the $1.12 handle at writing (topped out at

$1.1190 so far) and GBP/USD is making a go at the Friday highs of $1.3160.

-Oil prices remain elevated but are off the highs (WTI and Brent futures up

1.5-2.0%) as tension between Iran and the US continues to dominate the front

pages. Equities across mainland Europe are lower by over 1% apiece, with US

futures off by a similar margin. The JPY is yet to pick up a major tailwind so

far today, however, with CHF in favour and pressuring USD/CHF to narrow the gap

with the %0.9647 December lows.

-The US PMI equivalent is due Monday, as well as Canadian raw material price

indices in a relatively quiet session. There are no central bank speakers of

note. US earnings season kicks off this week, with major names due including

Walgreens, Constellation Brands and Lennar Corp.