FX.co ★ Fundamental analysis for February 05, 2013

The euro fell against the yen and is still next to a new record low of two and half years. It is the most important information pertaining to the currency market.

The single currency had ceded from 1.3708, which struck late on Friday, to the lowest of the day so far, 1.3457. However, a PMI services in some countries of the eurozone was lower than expected, the same indicator in Spain grew above expectations.
Also the British pound, although in milder form, is regaining its positions. The UK PMI Services again ranked above 50 points, marking the division between the expansion and contraction of the sector, after a month negative and a positive currency impact felt.

As for the yen, it advanced to 92.30 per dollar after it fell as low as 93.18 yesterday. It is the weakest level since May 13, 2010.
The Aussie fell against all of its major peers, after the Reserve Bank of Australia signaled it was prepared to cut interest rates to a record low this year. The currency dropped to 1.0404 against the US dollar.

The currencies linked to oil, Canadian dollar and Mexican peso are unchanged, and there is no definite trend in the short term. In both cases, it is appropriate to place low-risk positions; we expect a slight decline in both currencies during the American session.