As the European session began the Euro was little changed against the Pound but was trading in the region of a one month high against the US Dollar.
However, following the publication of several pieces of influential news for the Eurozone the Euro was able to post a modest advance against the Pound.
Although disappointing manufacturing PMI from China weighed on risk sentiment, French manufacturing and services PMI exceeded estimates by coming in at 49.8 and 48.3 respectively. While both figures remain below the 50 mark which separates growth from contraction they were significantly better than the 48.8 and 47.5 estimates.
Meanwhile, Germany’s manufacturing sector returned to growth in July, with PMI climbing from 48.6 to 50.3. The German services sector also expanded by more than anticipated, as PMI rose to 52.5 rather than coming in at 50.7 as forecast.
In response to the German data senior Markit economist Tim Moore stated: ‘Germany’s private sector shook off its recent bout of malaise in July, as stronger manufacturing and services growth underpinned the fastest pace of output expansion for five months. The return to new business growth sets a positive tone at the start of the third quarter and a rebound in employment numbers adds to the air of positivity in the latest figures.’
The Euro/Pound pairing is currently trading in the region of 0.8592
Moore continued: ‘The stronger performance of the German private sector in July appears to have been driven by improvements in domestic business and consumer spending. In particular, manufacturers cited higher demand patterns from the autos industry and among clients in the domestic construction sector, which helped offset continued weakness in key export markets.’
While this is positive news for the Eurozone, Euro gains against the Pound were limited ahead of tomorrow’s influential UK GDP data.
Today’s UK news, including CBI business optimism for July, could inspire further movement in the EUR/GBP pairing.
Euro (EUR) Exchange Rates
As of 08:50
The Euro/US Dollar Exchange Rate is currently in the region of: 1.3215 <
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8592 <
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.4282 >
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6556 >
The Euro/ Canadian Dollar Exchange Rate is currently in the region of: 1.3602 >