European Session – Euro, pound recover on positive data
November 4, 2013 1:12 pm
The euro managed to continue its moderate bounce off the lows made in the Asian session, while the pound benefited from stronger-than-expected construction PMI data.
The euro rose 0.13% against the dollar to 1.3510, after hitting 1.3442 earlier in the day. The market was looking forward to signs from the ECB later in the week, when the Governing Council of the bank will meet to discuss interest rates.
Against the yen, the dollar was flat at 98.68.
In economic data, final Eurozone PMI manufacturing readings for October were announced and were in line with expectations as well as the flash estimates. The survey showed that Eurozone manufacturing was expanding at 51.3, but that the recovery was slow and weak.
Furthermore, the average across the Eurozone masked some important regional differences. Specifically, Germany was one of the strongest performers while French manufacturing was still in contraction. Spanish and Italian manufacturing was expanding but more moderately compared to Germany.
There was more positive news from the Eurozone Sentix investor sentiment for November, which was higher than expected at 9.35 compared to expectations of 6.0. This was the highest sentiment reading since May of 2011.
In the UK, there was good news from the release of the October Construction PMI indicator, which beat expectations coming in at 59.4 (58.9 was the previous number as well as the consensus estimate).
The pound rose on the data, up 0.26% against the dollar to 1.5974. Traders were expecting US Durable goods and factory orders later in the US session.
The euro managed to continue its moderate bounce off the lows made in the Asian session, while the pound benefited from stronger-than-expected construction PMI data.
The euro rose 0.13% against the dollar to 1.3510, after hitting 1.3442 earlier in the day. The market was looking forward to signs from the ECB later in the week, when the Governing Council of the bank will meet to discuss interest rates.
Against the yen, the dollar was flat at 98.68.
In economic data, final Eurozone PMI manufacturing readings for October were announced and were in line with expectations as well as the flash estimates. The survey showed that Eurozone manufacturing was expanding at 51.3, but that the recovery was slow and weak.
Furthermore, the average across the Eurozone masked some important regional differences. Specifically, Germany was one of the strongest performers while French manufacturing was still in contraction. Spanish and Italian manufacturing was expanding but more moderately compared to Germany.
There was more positive news from the Eurozone Sentix investor sentiment for November, which was higher than expected at 9.35 compared to expectations of 6.0. This was the highest sentiment reading since May of 2011.
In the UK, there was good news from the release of the October Construction PMI indicator, which beat expectations coming in at 59.4 (58.9 was the previous number as well as the consensus estimate).
The pound rose on the data, up 0.26% against the dollar to 1.5974.
Traders were expecting US Durable goods and factory orders later in the US session.
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