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UK PMI Services was finalized at 60.5 in February, up from January's 54.1. That's the highest level since last June. PMI Composite was finalized at 59.9, up from February's 54.2.

Andrew Harker, Economics Director at IHS Markit: "The ebbing of the Omicron wave of the COVID-19 pandemic contributed to a rebound in growth in the UK service sector in February, with rates of expansion in activity and new business up sharply... Although the latest set of PMI data were encouraging, the inflationary picture still has the potential to limit growth, while it remains to be seen what impact the Russian invasion of Ukraine will have on the service sector and wider economy."

Full release here.

Eurozone PMI Services was finalized at 55.8 in February, up from January's 51.1. PMI Composite was finalized at 55.5, up from January's 52.3. That's also the strongest reading since last September.

Looking at some member states, Ireland PMI Composite rose to 59.1, 3-month high. Spain rose to 56.5, 3-month high. Germany rose to 55.6, 6-month high. France rose to 55.5 while Italy rose to 53.6.

Chris Williamson, Chief Business Economist at IHS Markit said: "The survey data for February depict a eurozone economy that was regaining robust growth momentum ahead of the invasion of Ukraine. Business activity accelerated to a pace commensurate with GDP growth in excess of 0.6%, buoyed by a relaxation of virus restrictions...

"Though it remains early days to be assessing the impact of the war, growth prospects are also likely to have been hit by heightened risk aversion and new sanctions, dampening the rebound from the pandemic. With inflation risks rising and growth prospects waning, the Ukraine conflict adds to business and household headwinds for the coming months, and exacerbates the difficult juggling act of the ECB in controlling inflation while sustaining a robust economic recovery."

Full release here.

Germany PMI Services was finalized at 55.8 in February, up from January's 52.2. PMI Composite was finalized at 55.6, up from January's 53.8. That's also the highest level since last August.

Phil Smith, Economics Associate Director at IHS Markit:

"February's PMI data showed Germany's service sector recovering further from its slump at the end of last year, aided by an initial lifting of some restrictions and a strengthening of demand as the roadmap for the further easing of containment measures was laid out.

"Another strong round of job creation across the services economy contributed to a further improvement in the overall labour market in February, and was consistent with hopes of a continued pick-up in activity in the months ahead as the pandemic's influence wanes. However, the survey captured the mood before the escalation of the Ukraine-Russia tensions into a conflict, which brings with it downside risks to the growth outlook.

"Inflationary pressures continue to run uncomfortably high, with the combination of the release of pent-up demand and sharply rising costs leading to a near record increase in prices charged across the service sector in February. Given the recent developments in energy prices and the threat of fresh supply disruptions, inflation looks set to stay higher for longer."

Full release here.

France PMI Services was finalized at 55.5 in February, up from January's nine-month low of 53.1. PMI Composite was finalized at 55.5, up from January's nine-month low of 52.7.

Joe Hayes, Senior Economist at IHS Markit:

"As daily COVID-19 case numbers took a downward trajectory, latest survey data showed a rebound in growth across the service sector in February. There were plenty of encouraging signs for economic activity midway through the first quarter – demand for services rose at the fastest pace since last summer, and panel member reports suggest that the underlying market trend is supportive. Looser virus containment measures have helped this, especially with respect to new business from abroad, which rose at a series record rate.

"Risks of growth dampeners still remain notable, however. Inflation risks are clearly tilted to the upside, with soaring energy prices and reports of rising wages maintaining pressure on business costs. It's clear that pricing power among firms is strong at present. While selling prices continue to rise at near-record highs, new orders are growing at a decent clip. It's likely that policymakers will need to intervene to cool price pressures, and this puts broader recovery efforts in a precarious position."

Full release here.

EURJPY has gained buoyancy slightly above the 128.00 level, but the bearish structure of the pair, looks to be unflustered by buyers who recently found their feet at a one-year low within the 127.29-127.50 support band. The falling simple moving averages (SMAs) are endorsing the negative bearing in the pair and the nearing of a bearish crossover of the 200-period SMA by the 100-period one, could signal additional strength to the downside.

Currently, the Ichimoku lines are indicating a stall in downward forces, while the short-term oscillators are transmitting mixed messages in directional momentum. The MACD, in the negative area, is above its red trigger line showing that buyers are fighting back, while the RSI’s improvements in the bearish zone look sluggish. On the other hand, the negative charge in the stochastic oscillator is promoting negative price action in the pair.

In the negative scenario, support below the previous candles low could arise around the red Tenkan-sen line at 128.02. If bearish pressures grow, sellers could then challenge the 127.29-127.50 support section, that has held since the later part of February 2021. If this floor of a larger trading range that has endured since August 2021 fails to dismiss sellers from extending the three-week decline from 133.15, the price may then meet the 127.00 handle before traders’ focus turns to the 126.42-126.68 support band.

Alternatively, if buying interest increases, initial upside hindrance could come from the 128.69 barrier and the adjacent blue Kijun-sen line at 128.79. Overstepping this, the bulls may then face a resistance zone from the 129.00 handle until the 50-period SMA at 129.24, fortified by the Ichimoku cloud’s lower band and a potential restrictive trend line, pulled from the 16-week high of 133.15. Should bullish forces successfully conquer this upside obstacle, the price could steer higher to confront a tough buffer zone between the 129.78 high and the 100-period SMA at 130.28, an area that also encapsulates the 200-period SMA.

Summarizing, EURJPY is sustaining a bearish bearing below the 128.79 boundary, the SMAs and the prospective diagonal resistance barrier. A clear price break below the one-year low of 127.29 would confirm a resumption of the negative bearing. Yet, for optimism to return in the pair, the price wound need to climb north of the 130.28 level.

Daily Pivots: (S1) 1.1074; (P) 1.1109; (R1) 1.1159; More...

EUR/USD's decline is in progress and intraday bias stays on the downside. Current fall is part of the down trend from 1.2348. Next target is 61.8% projection of 1.2265 to 1.1120 from 1.1494 at 1.0786. On the upside, break of 1.1273 resistance is needed to be the first sign of bottoming. Otherwise, outlook stays bearish in case of recovery.

In the bigger picture, the decline from 1.2348 (2021 high) is expected to continue as long as 1.1494 resistance holds. Firm break of 1.0635 (2020 low) will raise the chance of long term down trend resumption and target a retest on 1.0339 (2017 low) next. Nevertheless, break of 1.1494 will maintain medium term neutral outlook, and extend range trading first.

Daily Pivots: (S1) 1.3316; (P) 1.3362; (R1) 1.3451; More...

Intraday bias in GBP/USD stays neutral and sideway trading continues. Further decline is expected with 1.3485 support turned resistance intact. On the downside, break of 1.3272 will target 1.3158 low. Further break there will resume larger down trend from 1.4248. However, firm break of 1.3485 will dampen this bearish view and turn bias back to the upside for 1.3641 resistance.

In the bigger picture, as long as 38.2% retracement of 1.1409 to 1.4248 at 1.3164 holds, up trend from 1.1409 (2020 low) is still in progress. On resumption, next target will be 38.2% retracement of 2.1161 to 1.1409 at 1.5134. Nevertheless sustained break of 1.3164 will argue that whole rise from 1.1409 has completed and bring deeper fall to 61.8% retracement at 1.2493.

Daily Pivots: (S1) 0.9167; (P) 0.9204; (R1) 0.9240; More....

Range trading continues in USD/CHF and intraday bias remains neutral. Choppy rise from 0.8925 would still be in favor to extend higher as long as 0.9090 support holds. Break of 0.9341 will target 0.9372 resistance and then 0.9471. On the downside, however, break of 0.9090 will bring deeper fall back to 0.8925 support.

In the bigger picture, medium term outlook will be neutral at best as long as 0.9471 resistance holds. Larger down trend could still extend through 0.8756 (2021 low). However, firm break of 0.9471 will argue that the trend has already reversed and rebound the rally from 0.8756 with another impulsive move.

Daily Pivots: (S1) 114.98; (P) 115.34; (R1) 115.87; More...

Range trading continues in USD/JPY and intraday bias remains neutral. On the upside, firm break of 116.34 will resume larger up trend from 102.58 to 118.65 long term resistance next. On the downside, though, break of 114.40 will continue the corrective pattern from 116.34 with another fall to 113.46 support.

In the bigger picture, no change in the view that rise from 102.58 is the third leg of the up trend from 101.18 (2020 low). Such rally should target a test on 118.65 (2016 high). Sustained break there will pave the way to 120.85 (2015 high) and raise the chance of long term up trend resumption. This will remain the favored case as long as 55 week EMA (now at 111.64) holds.

Daily Pivots: (S1) 0.7232; (P) 0.7261; (R1) 0.7283; More...

AUD/USD's rally is still in progress and intraday bias remains on the upside. The break of 0.7313 resistance suggests that corrective decline from 0.8006 has completed at 0.6966, after hitting 0.6991 key support. Further rise should be seen to 0.7555 resistance for confirmation. On the downside, break of 0.7237 minor support will turn intraday bias neutral first. But further rally is still in favor as long as 0.7093 support holds.

In the bigger picture, focus remains on 0.6991 key structural support. Sustained break there will argue that the whole up trend from 0.5506 might be finished at 0.8006, after rejection by 0.8135 long term resistance. Deeper decline would then be seen back to 61.8% retracement of 0.5506 to 0.8006 at 0.6461. Meanwhile, strong rebound from 0.6991 will retain medium term bullishness. That is, whole up trend from 0.5506 is still in progress.