Forex - EUR/USD little changed after PMI reports

Published 12/14/2012, 04:16 AM
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Investing.com - The euro was steady against the U.S. dollar on Friday, after the release of mixed manufacturing and service sector activity data from the euro zone, while concerns over U.S. budget talks persisted.

EUR/USD hit 1.3119 during European morning trade, the pair's highest since December 5; the pair subsequently consolidated at 1.3084, easing up 0.06%.

The pair was likely to find support at 1.3041, the low of December 13 and resistance at 1.3127, the high of December 5.

In a preliminary report, Markit research group said the euro zone's manufacturing purchasing managers' index improved less-than-expected in December, ticking up to 47.3 from a reading of 46.2 the previous month.

Analysts had expected the index to improve to 46.6 in December.

The euro zone's services PMI rose to 47.8 this month from 46.7 in November, beating expectations for a rise to 47.0.

Separately, Markit said that Germany's manufacturing PMI slipped to 46.3 in December from 46.8 the previous month. Analysts had expected the index to improve to 47.2.

Germany's services PMI climbed to 52.1 this month from a reading of 49.7 in November, beating expectations for a rise to 50.0.

Sentiment also remained supported after euro zone finance ministers agreed on Thursday to immediately disburse EUR34.4 billion in bailout funds for Greece. The announcement came one day after a long-awaited deal on rules for supervising euro zone banks was concluded.

Meanwhile, investor focus shifted back to negotiations to avoid the U.S. fiscal cliff, amid concerns that the automatic tax hikes and spending cuts due to take effect in early 2013 could derail the U.S. recovery.

The euro was also steady against the pound with EUR/GBP inching up 0.01%, to hit 0.8117.

Later in the day, the euro zone was to release official data on consumer inflation.

The U.S. was to produce official data on consumer inflation, the capacity utilization rate, industrial production and preliminary data on manufacturing activity.


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