The Euro strengthened against the Pound and recouped Wednesday’s losses against the US Dollar after the latest data showed that economic activity in the Eurozone advanced sharply in August as a strong recovery in the German manufacturing sector offset weak readings out of France and elsewhere.
According to Markit’s Purchasing Managers Index (PMI) manufacturing activity across the Eurozone came in at 51.3 in August, up from the 50.3 level in July. Activity in the services sector advanced to 51.0 from 49.8 in July. Both readings came in far ahead of the median forecasts of economists. A figure above 50 indicates an expansion.
Markit’s composite reading of the Eurozone economy rose to 51.7 from 50.5 in the previous month, the highest reading since June of 2011.
“After the strong second quarter, many observers had predicted a quick slowdown of the German economy in the second half of the year. Up to now, it looks as if the economy is gaining rather than losing momentum. It looks as if new growth hopes for the rest of the Eurozone are stimulating German confidence, which in turn could lead to higher German economic growth and could eventually become growth-supportive for the Eurozone,” said ING economist Carsten Brzeski.
The data has increased hopes that the Eurozone is finally tuning a corner and embarking down a road to recovery. The region dragged itself out of recession earlier in the month thanks to the strong performance of Germany.
Manufacturing activity in the Eurozone’s biggest economy surged to a 25-month high of 52.0 whilst the country’s services sector reached a six-month high of 52.4. Markit’s composite index came in at 53.4 the highest level recorded in seven-months.
Euro (EUR) Exchange Rates
As of 11:05 am
The Euro/US Dollar Exchange Rate is currently in the region of: 1.3313 <
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8552 >
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.4817>
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.7031 >
The Euro/ Canadian Dollar Exchange Rate is currently in the region of: 1.3989 >