The euro made gains against most major currencies as PMI data from the eurozone increased unexpectedly in the previous quarter. Markit said in a report that Eurozone Services PMI increased to 46.7, from 45.7 in the previous quarter. This pleased the markets after analysts had been expecting Eurozone Services PMI to stay unchanged at 45.7.
There was also a boost to the euro after German service sector activity also increased unexpectedly last month, with German Services PMI increasing to 49.7, from 48.0 in the previous month. Analysts had been expecting German Services PMI to stay unchanged at 48.0 for the last month.
The rise in the euro was aided by the service sector activity in Spain rising unexpectedly too. In a report, Markit Financial Information Services stated that Spanish services PMI increased to a seasonally adjusted reading of 42.4, up from 41.2 in the previous month, after analysts had been expecting Spanish services PMI to drop to 41.0 last month.
It wasn’t all unexpected good news coming from the Eurozone as French service sector activity dropped unexpectedly last month, with French Services PMI falling to a seasonally adjusted reading of 45.8, down from 46.1 recorded in the preceding month. Analysts had been expecting Services PMI in France to stay unchanged at 46.1 last month.
Figures under 50 indicate an economy in contraction whilst readings above 50 show an expanding economy. As a result of the surprise rises in the PMI coupled with the renewed optimism over the future of Greece in the Eurozone, the euro was up 015% against the USD, trading at 1.3114. The euro was also up against the GBP, rising 0.12% at time of trading, valued at 0.8142.
Today’s Outlook
After a busy morning so far in positive European data and rises in both the euro and European stocks; the upcoming 10 year and 3 year debt auctions held in Spain in the next hour shall be closely viewed by traders. Later in the afternoon, investor focus will switch to the US with ADP Nonfarm employment change released in the US, followed by ISM Non-Manufacturing Index figures released also in the US. Drops are expected in both, so the pressure on the USD should continue throughout the day.
There was also a boost to the euro after German service sector activity also increased unexpectedly last month, with German Services PMI increasing to 49.7, from 48.0 in the previous month. Analysts had been expecting German Services PMI to stay unchanged at 48.0 for the last month.
The rise in the euro was aided by the service sector activity in Spain rising unexpectedly too. In a report, Markit Financial Information Services stated that Spanish services PMI increased to a seasonally adjusted reading of 42.4, up from 41.2 in the previous month, after analysts had been expecting Spanish services PMI to drop to 41.0 last month.
It wasn’t all unexpected good news coming from the Eurozone as French service sector activity dropped unexpectedly last month, with French Services PMI falling to a seasonally adjusted reading of 45.8, down from 46.1 recorded in the preceding month. Analysts had been expecting Services PMI in France to stay unchanged at 46.1 last month.
Figures under 50 indicate an economy in contraction whilst readings above 50 show an expanding economy. As a result of the surprise rises in the PMI coupled with the renewed optimism over the future of Greece in the Eurozone, the euro was up 015% against the USD, trading at 1.3114. The euro was also up against the GBP, rising 0.12% at time of trading, valued at 0.8142.
Today’s Outlook
After a busy morning so far in positive European data and rises in both the euro and European stocks; the upcoming 10 year and 3 year debt auctions held in Spain in the next hour shall be closely viewed by traders. Later in the afternoon, investor focus will switch to the US with ADP Nonfarm employment change released in the US, followed by ISM Non-Manufacturing Index figures released also in the US. Drops are expected in both, so the pressure on the USD should continue throughout the day.