Forex - EUR/USD close to session highs after PMI data
Investing.com
Published Nov 22, 2012 04:32AM ET
EUR/USD hit 1.2869 during European morning trade, the pair’s highest since November 7; the pair subsequently consolidated at 1.2849, gaining 0.16%.
The pair was likely to find support at 1.2735, Wednesday’s low and resistance at 1.2949, the high of November 20.
Germany’s manufacturing purchasing managers’ index rose to 46.8 in November, up from 46.0 in October and better than forecasts for a reading of 45.9.
Germany’s services PMI came in at 48.0, below expectations for a reading of 48.5.
A separete report showed that Frances manufacturing PMI rose to 44.7, from 43.7 in October.
The euro zone’s manufacturing PMI rose to 46.2 this month from 45.4 in October, above expectations for a reading of 45.6.
However, the euro zone’s services PMI declined to 45.7, from 46.0 in October, compared to expectations for a reading of 46.1.
The data came after a report earlier showed that China’s preliminary HSBC manufacturing PMI rose to 50.4 in November, up from a final reading of 49.5 in October. The data eased concerns over a slowdown in the world’s largest economy.
The euro was also supported after German Chancellor Angela Merkel said an agreement to unlock a delayed bailout installment for Greece was still possible when euro zone finance ministers resume talks on Monday.
Talks between finance ministers and the International Monetary Fund ended without a deal on Tuesday, amid disagreements on how best to reduce the country’s debt to sustainable levels.
The euro edged higher against the pound, with EUR/GBP up 0.14% to 0.8052 and was trading close to six-and-a-half month highs against the broadly weaker yen, with EUR/JPY up 0.41% to 106.29.
Trade volumes were expected to remain light on Thursday, with U.S. markets closed for the Thanksgiving holiday.
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Written By: Investing.com
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