Euro Rises After Eurozone PMI Reports
August 23 2017 - 1:20AM
RTTF2
The euro strengthened against other major currencies in the
European session on Wednesday, after data showed that Eurozone
private sector activity maintained strong growth momentum in
August.
Data from IHS Markit showed Eurozone flash manufacturing PMI
climbed to 57.4 in August from 56.6 in July. In contrast, it was
forecast to decline to 56.3.
The flash composite output index rose slightly to 55.8 in August
from 55.7 in July. Meanwhile, economists had expected the index to
fall to 55.4.
At the same time, the services Purchasing Managers' Index
dropped to a 7-month low of 54.9 in August from 55.4 in July. The
index was expected to remain stable at 55.4.
The German flash services Purchasing Managers' Index rose to
53.4 from 53.1 in July. That was in line with economists' forecast.
The composite output index climbed to a 2-month high of 55.7 in
August from 54.7 in July.
Similarly, the factory PMI increased to 59.4 in August from 58.1
in July. In contrast, the index was expected to fall to 57.6.
The French services Purchasing Managers' Index fell to a 7-month
low to 55.5 in August from 56.0 in July. The expected reading for
the month was 55.8. The manufacturing PMI climbed to a 76-month
high of 55.8 in August from 54.9 in the prior month. Meanwhile, it
was forecast to drop to 54.5.
In the Asian trading today, the euro held steady against its
major rivals.
In the European trading, the euro rose to a 10-month high of
0.9214 against the pound and a 1-week high of 1.1419 against the
Swiss franc, from early lows of 0.9160 and 1.1376, respectively. If
the euro extends its uptrend, it is likely to find resistance
around 0.93 against the pound and 1.15 against the franc.
The euro advanced to 1.1794 against the U.S. dollar, from an
early 2-day low of 1.1739. The euro may test resistance near the
1.19 region.
Against the Australian and the New Zealand dollars, the euro
climbed to a 1-week high of 1.4948 and a 14-month high of 1.6353
from early lows of 1.4856 and 1.6149, respectively. On the upside,
1.50 against the aussie and 1.65 against the kiwi are seen as the
next resistance levels for the euro.
Against the yen and the Canadian dollar, the euro edged up to
129.06 and 1.4829 from early lows of 128.49 and 1.4772,
respectively. The euro is likely to find resistance around 131.00
against the yen and 1.50 against the loonie. Looking ahead, U.S.
Markit's PMI reports for August, U.S. new home sales data for July,
Eurozone consumer confidence index for August and U.S. weekly crude
oil inventories data are slated for release in the New York
session.
At 9:05 am ET, Federal Reserve Bank of Dallas President Robert
Kaplan is expected to speak at the Permian Basin Petroleum
Association, in Midland, Texas.
Euro vs Yen (FX:EURJPY)
Forex Chart
From Apr 2024 to May 2024
Euro vs Yen (FX:EURJPY)
Forex Chart
From May 2023 to May 2024