Euro gained as positive data from the eurozone was surprisingly good, giving hope that the European economy will be able to emerge from recession without additional stimulating measures from policy makers.
The Markit Flash Eurozone Services Purchasing Managers’ Index rose from 48.3 in June to 49.6 in July, reaching the highest level in 18 months. The Markit Flash Eurozone Manufacturing PMI climbed from 48.8 to 50.1 this month. The reading was highest in two years and indicated expansion of the sector. Indices of Germany and France were also good.
The euro remained soft versus the dollar despite the positive surprises. The greenback had its own supportive factor as Markit Flash Eurozone Services Purchasing Managers’ Index rose accelerated from 459,000 in May to 497,000 in June, beating forecasts.
EUR/USD fell from 1.3220 to 1.3198 yesterday and traded at 1.3193 as of 1:12 GMT today. EUR/JPY as up from 131.43 to 132.29 on the previous trading session and remained near that level on the current session. EUR/GBP was at about 0.8616, where it closed yesterday after opening at 0.8602.
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