European Session – Euro up on strong December flash PMIs
December 16, 2013 1:21 pm
The euro traded higher against the dollar and the yen during today’s European session, on the back of encouraging business confidence surveys for the Eurozone, which suggested the single currency area’s economy was continuing to recover at a steady pace.
The flash PMI business confidence indicators for the Eurozone during December showed that manufacturing posted a significant improvement; coming in at 52.7 versus 51.6 during the previous month, whereas services dipped to 51.0 from 51.2. Overall the composite index beat expectations by coming in at 52.1 versus 51.9 expected.
Once again, the index at aggregate Eurozone level masked important national differences. Germany’s manufacturing and services were expanding strongly, but France’s two major sectors were both contracting.
The euro gained 0.23% against the dollar to trade at 1.3787, not far from its 1.3833 recent high. It looked like the Fed was holding the key to further euro gains, should it decide not to taper at the end of its two-day meeting that begins tomorrow. The market was hesitant to sell the dollar more, on the chance that the Fed does decide to taper on Wednesday.
The euro also gained 0.30% against the yen to trade at 141.82. According to Reuters, net speculative short yen positions at Chicago’s International Monetary Market were at the highest in 6 years the exchange’s regular weekly filings showed.
The pound continued its upward grind versus the dollar by gaining 0.16% to trade at 1.6333.
The euro traded higher against the dollar and the yen during today’s European session, on the back of encouraging business confidence surveys for the Eurozone, which suggested the single currency area’s economy was continuing to recover at a steady pace.
The flash PMI business confidence indicators for the Eurozone during December showed that manufacturing posted a significant improvement; coming in at 52.7 versus 51.6 during the previous month, whereas services dipped to 51.0 from 51.2. Overall the composite index beat expectations by coming in at 52.1 versus 51.9 expected.
Once again, the index at aggregate Eurozone level masked important national differences. Germany’s manufacturing and services were expanding strongly, but France’s two major sectors were both contracting.
The euro gained 0.23% against the dollar to trade at 1.3787, not far from its 1.3833 recent high. It looked like the Fed was holding the key to further euro gains, should it decide not to taper at the end of its two-day meeting that begins tomorrow. The market was hesitant to sell the dollar more, on the chance that the Fed does decide to taper on Wednesday.
The euro also gained 0.30% against the yen to trade at 141.82. According to Reuters, net speculative short yen positions at Chicago’s International Monetary Market were at the highest in 6 years the exchange’s regular weekly filings showed.
The pound continued its upward grind versus the dollar by gaining 0.16% to trade at 1.6333.
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