The Euro enjoyed good news from around the continent. It helped the Euro, but only slightly. Here’s an overview of today’s events in the old continent:
- French Flash Manufacturing PMI rose from 36.5 to 40, exceeding expectations at 37.
- French Flash Services PMI rose from 43.6 to 46.2, exceeding predictions at 43.8.
- German Flash Manufacturing PMI rose from 32.4 to 35.0, more than 33.2 that was expected.
- German Flash Services PMI rose from 42.3 to 43.5, more than expectations at 42.6.
- European Flash Manufacturing PMI rose from 33.9 to 36.7, exceeding expectations at 34.7.
- European Flash Services PMI rose from 40.9 to 43.1, exceeding expectations that stood on 41.2.
So, Purchasing Managers Index in France, Germany and all of Europe was very good. They Euro did react positively. It rose above 1.30, reaching 1.3087 – it’s high for today.
Two more good figures were published in Europe:
- Current Account showed a deficit of 8.1 billion, less than last month’s -12.3 billion (revised upwards), and significantly better than 10.6 billion.
- Industrial New Orders were also good, falling only 0.6%, much much better than a plunge of 2.4%. Also last month’s figure was revised upwards – fell only 2%, much less than the early figure of 3.4%.
But the Euro didn’t proceed. All these good figures helped the Euro cross the 1.30 line, but didn’t help it cross 1.31, which a significant support line, and now serves as a resistance line.
EUR/USD is now trading at 1.3050, around the levels that it closed the previous forex week.
Tomorrow’s German Ifo Business Climate and American figures will set the direction of the Euro, in week that featured good European figures, but no progress. This is exactly what happened with the ZEW Economic Sentiment.
I’ll publish an outlook for tomorrow later on.
