The Euro to Pound exchange rate softened on Monday morning following the release of mixed Purchasing Manager Index reports from France, Germany and the wider Eurozone.
The first report to be released was that of France’s manufacturing PMI which came in strongly and beat economist predictions. The PMI rose to a seasonally adjusted figure of 51.9 in March, smashing expectations for a figure of 49.8. The rise in manufacturing activity was the fastest rise recorded since June 2011.
“Much -improved PMI data in March indicate that the private sector is moving in the right direction, with activity, new business and backlogs all returning to growth,” said Jack Kennedy, Senior Economist at Markit.
The figure eased concerns over the health of the Eurozone’s second largest economy and briefly sent the Euro higher against a number of peers. Those gains were lost however following the release of PMI data out of Germany.
The data showed that manufacturing activity in the Eurozone’s largest economy improved at its slowest rate in four months in March, casting doubts over the health of the nation’s economy. The German manufacturing PMI fell to 53.8 this month, down from the previous figure of 54.8. Economists had been expecting the figure to come in at 54.6.
The wider Eurozone’s composite PMI came in at 53.3, matching forecasts, manufacturing PMI came in as expected at 53 and the Services PMI came in at 52.4 below expectations for a figure of 52.6. In PMI’s any figure above 50 indicates growth, a figure below means contraction.
The Pound to Euro exchange rate could push higher if today’s Mortgage Approvals data comes in strongly.
Euro (EUR) Exchange Rates
[table width=”100%” colwidth=”50|50|50|50|50″ colalign=”left|left|left|left|left”]
Currency, ,Currency,Rate ,
Euro,,US Dollar,1.3777 ,
Euro,,British Pound,0.8359 ,
Euro,,Australian Dollar,1.5140 ,
Euro,,Canadian Dollar,1.5482 ,