The Euro enjoyed a strong trading session yesterday as manufacturing PMI for Germany and the Eurozone surprised to the upside.
Services PMI for the 17-nation currency bloc and its largest economy fell slightly short of estimates, but the manufacturing figures were impressive and indicated that Germany is driving continued economic growth in that sector.
However, the Euro did trim its advance later in the European trading and strategist Brian Daingerfield highlighted; ‘The composite PMI was better than expected, but looking at the fine prints, Germany is looking stronger, but the rest of the Europe isn’t. You can see a bit of the strength in euro that has given way here.’
The Euro/US Dollar Exchange Rate is currently in the region of: 1.3772
Although US preliminary Markit PMI showed improvement and industrial/manufacturing production in the nation expanded, the US Dollar was feeling the pressure ahead of this week’s Federal Open Market Committee meeting and was unable to recover losses against the Euro during North American trading.
Today the FOMC will gather and begin a two-day policy discussion. It is expected that the committee may decide to trim the level of asset purchases. Industry experts also foresee the Fed holding interest rates at record lows into the New Year.
The major Eurozone data to watch out for today are Zew economic sentiment surveys for Germany and the currency bloc.
Meanwhile, US inflation figures could also drive EUR/USD movement before the week’s big announcement.
The Euro was holding steady against the Pound as the European session began having advanced on its UK peer on Monday as a result of the Eurozone’s encouraging data and news the UK house prices fell was digested.
Before the local session closes GBP/EUR fluctuations can be expected to occur as a result of the UK’s consumer price index, due to be published at 09:30 GMT.
Euro (EUR) Exchange Rates
As of 07:05 am GMT
The Euro/US Dollar Exchange Rate is currently in the region of: 1.3772 >
The Euro/Pound Sterling Exchange Rate is currently in the region of: 0.8437 <
The Euro/Australian Dollar Exchange Rate is currently in the region of: 1.5405 >
The Euro/ New Zealand Dollar Exchange Rate is currently in the region of: 1.6632 <
The Euro/ Canadian Dollar Exchange Rate is currently in the region of: 1.4574 <