Forex - EUR/USD rallies to 6-day high after strong euro zone PMI

Published 11/02/2010, 08:32 AM
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Investing.com – The euro extended gains against the U.S. dollar on Tuesday, rallying to a fresh 6-day high following the release of better-than-expected euro zone manufacturing data.

EUR/USD hit 1.4033 during European early afternoon trade, the pair’s highest since October 25; the pair subsequently consolidated at 1.4031, jumping 1.02%.

The pair was likely to find support at 1.3763, last Thursday’s low and resistance at 1.4155, the high of October 15 and an 8-month high.

Earlier in the day, the euro zone’s October manufacturing purchasing managers index was revised up to 54.6 from 53.7 in September. It had originally been estimated at 54.1.

Commenting on the report, Chris Williamson Chief Economist at Markit said “An improvement in the PMI for the first time in three months provides much needed reassurance that manufacturing remains an important driver of the euro area recovery.”

The euro was also up against the pound, with EUR/GBP soaring 1.14% to hit 0.8762.

Later in the day, Federal Reserve policy makers were to begin their 2-day November policy meeting, which was widely expected to result in the unveiling of fresh monetary easing. Also Tuesday, U.S. mid-term elections were to take place.

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