Euro Continues To Outperform Against Weakening Dollar
US dollar failed to hold ground especially against the Euro, as the latter one managed to climb higher above the 1.0960 level and looks set for a break above 1.10.
Several important events were lined up in the Euro area including Manufacturing PMI’s.
France Purchasing Managers Index (PMI) Manufacturing released by Markit Economics registered a reading of 48.2 in March 2015 whereas the market was expecting it be 48.5.
France services PMI registered a rise from 52.2 to 52.8 in March 2015.
German manufacturing PMI gained from 51.1 to 52.4 in March 2015.
German services PMI posted a nice gain and increased from 54.7 to 55.3 in March 2015.
Euro Zone manufacturing PMI increased from 51.0 to 51.9, and the services PMI rose by more than 0.5 points from 53.7 to 54.3 in March 2015.
EURUSD pair looks set for a test of the 1.1000-20 area where the Euro sellers might appear.
Euro Zone Manufacturing PMI
Earlier today during the London session, the Euro zone Manufacturing Purchasing Managers Index (PMI) was released by the Markit Economics. The forecast was slated for an increase from the last reading of 51.0 to 51.5 in March 2015. However, the outcome was on the higher side, as the Euro zone Manufacturing Purchasing Managers Index increased to 51.9. The report mentioned that the improvement was broad-based by sector, and the Growth of services business activity was one of the best and highest since May 2011. This was a very positive note.
Speaking on the same the Chief Economist at Markit, Chris Williamson mentioned that the “eurozone’s economic recovery gained further momentum in March, with the PMI hitting its highest for almost four years. The improvement provides welcome news to a region awaiting signs that the ECB’s quantitative easing is stimulating the real economy”.
Furthermore, the Euro zone services PMI was also released by the Markit Economics. The forecast was slated for an increase from the last reading of 53.7 to 53.9 in March 2015. However, the outcome was again better than expected, as the Euro zone services PMI rose to 54.3.
German Manufacturing PMI
The German Manufacturing Purchasing Managers Index was also released today during the London session. The forecast was slated for a minor rise from the last reading of 51.1 to 51.5 in March 2015. However, the outcome was very encouraging, as the German manufacturing PMI increased by 1.3 points to 52.4. Moreover, the German services PMI also posted a rise from 54.7 to 55.3. Overall, the data was on the positive side, and helped the EURUSD pair to gain strength.
The report stated that the German manufacturers reported one of the highest reduction in stocks of finished goods in over two years in March, and not only this, the pre-production inventories also fell this month.
Technical Outlook – Euro
The Euro surged higher and looks set for a test of the 1.10 resistance area in the near term. Let us see how sellers react in that situation.
UK Nationwide Housing Prices highlighting the value of the houses prices in UK and indicate current movements in the housing market posted an increase of 1% in April, compared to the preceding month.
US dollar continued to weaken against a few currencies and managed to recover some ground against currencies like the Euro and the British Pound
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