The Euro was little moved against the Pound on Monday morning after data from both the Eurozone and UK came in positively.
The Euro found support after data showed that factory activity in the region expanded for an eighth consecutive month. Markit’s manufacturing PMI for February came in at 53.2, slightly down on the previous month’s figure of 54 but beat economist forecasts for a reading of 53.
Any figure above 50 indicates expansion whilst one below indicates contraction. The PMI’s from Germany, France and Italy all came in above expectations, even Spain saw an improved figure, suggesting that the regions manufacturing recovery is starting to spread from the powerhouse of Germany to other Eurozone nations.
“The dip in the manufacturing PMI, its first fall for five months, is a disappointment and a reminder of the hesitant nature of the regions nascent recovery. However, we should not lose sight of the fact that this is the second-strongest reading that the Eurozone has seen for almost three years,” said Markit’s chief economist Chris Williamson.
The US Dollar found support against the Euro as investors flocked to the currency for a safe haven as tensions in Ukraine continue to mount.
The Pound meanwhile found support also from PMI data. The UK’s manufacturing PMI came in at 56.9, up from the revised 56.6 figure recorded in January. Production output in the country has now risen for an eleventh consecutive month. A separate report showed that mortgage approvals hit their highest level since 2007.
Both the Euro’s and Pound’s gains are expected to be limited today as fears over the escalating crisis in Ukraine caused investors to favour safe havens. The threat of war between Russia and Ukraine heightened worries that the West will impose economic sanction upon Russia. If the situation develops further and war is declared we can expect both currencies to tumble as concerns are sure to grow as to whether NATO forces will get involved.
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,1.3778 ,
Euro,, Pound Sterling,0.8237 ,
Euro,,Australian Dollar,1.5447 ,
Euro,,Canadian Dollar,1.5234 ,
Pound Sterling,,Euro,1.2142 ,