Euro Spikes Up After Eurozone Services Activity Expands To Near 7-yr High
January 04 2018 - 1:19AM
RTTF2
The euro strengthened against its major rivals in early European
trading on Thursday, as Eurozone private sector expanded the most
since early 2011 driven by a near-record expansion of manufacturing
and the steepest rise in service sector for over six-and-a-half
years.
Final data from IHS Markit showed that the composite output
index rose to 58.1 in December from 57.5 in November. This was the
highest score since February 2011.
The score was slightly above the flash 58.0. The headline index
has signaled growth for 54 successive months.
The services Purchasing Managers' Index improved to 56.6 from
56.2 in November. The flash reading was 56.5.
In Germany, the service sector activity rose at the fastest rate
for two years in December, marking a strong finish to a highly
positive year.
Germany's composite PMI climbed to an 80-month high of 58.9 from
57.3 in the previous month. The flash reading was 58.7.
Upbeat Eurozone data along with higher oil prices also propped
up European shares.
The currency has been trading higher in the Asian session.
The single currency advanced to 1.2056 against the greenback,
after having fallen to 1.2005 at 7:00 pm ET. The euro is seen
finding resistance around the 1.23 region.
The 19-nation currency edged up to 1.1762 against the franc,
following a decline to 1.1730 at 5:30 pm ET. Continuation of the
euro's uptrend may see it challenging resistance around the 1.20
mark.
The euro strengthened to 135.69 against the yen, a level not
seen since October 2015. The next possible resistance for the euro
is seen around the 137.00 level.
Survey from Nikkei showed that Japan's manufacturing sector
continued to expand in December, and at an accelerated pace, with a
manufacturing PMI score of 54.0.
That's up from 53.6 in November, and it moves further above the
boom-or-bust line of 50 that separates expansion from
contraction.
Reversing from an early low of 1.5052 against the loonie, the
euro ticked up to 1.5092. On the upside, 1.52 is likely seen as the
next resistance for the euro.
Having fallen to a 6-day low of 1.5313 against the aussie at
1:15 am ET, the euro reversed direction and bounced off to 1.5362.
The euro is likely to challenge resistance around the 1.56
mark.
The euro rose back to 0.8898 against the pound, not far from an
early session's high of 0.8900. On the upside, 0.90 is possibly
seen as the next resistance for the euro-pound pair.
Survey data from IHS Markit showed that British service sector
growth accelerated at a faster-than-expected pace in December.
The IHS Markit/Chartered Institute of Procurement & Supply
Purchasing Managers' Index, rose to 54.2 in December from 53.8 in
November. Economists had expected the index to rise to 54.0.
Looking ahead, at 8:15 am ET, ADP private payrolls for December
are due.
In the New York session, U.S. weekly jobless claims for the week
ended December 30, Markit's services PMI for December and Canada
industrial product price index for November are slated for
release.
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