Euro Higher As Eurozone Business Growth Picks Up; ECB Decision Due
September 03 2015 - 2:10AM
RTTF2
The euro was firmer against its most major rivals in European
deals on Thursday, as economic activity across the currency bloc
gathered pace in August, and traders await the European Central
Bank's interest rate decision, due later in the day.
Final data from Markit showed that Eurozone private sector
growth improved more than estimated in August.
The final composite output index rose to 54.3 in August from
53.9 in July. The flash reading for August was 54.1.
Business activity improved at the fastest pace in over four
years. Levels of incoming new business also rose at a solid, albeit
slightly slower pace to support the second-quickest rate of job
creation since May 2011, the survey showed.
The services Purchasing Managers' Index came in at 54.4,
matching June's four-year high. It was up from 54 in July and
slightly above the flash score of 54.3.
Separate data from Markit showed that Germany's private sector
growth accelerated more than initially estimated to a 5-month high
in August.
The composite output index rose to 55 in August from 53.7 in
July. The flash reading for August was 54.0. The index signaled the
strongest increase in private sector output since March.
The final services Purchasing Managers' Index climbed to 54.9
from 53.8 in July. The reading was well above the flash score of
53.6.
The European markets are trading higher, ahead of the European
Central Bank's interest rate decision at 7:45 am ET. While the bank
is expected to stay pat on rates, it is forecast to downgrade
inflation view due to crashing commodity prices.
The ECB chief Mario Draghi will hold customary press conference
at 8.30 am ET.
The euro showed mixed performance in the previous session. While
the euro held steady against the yen, it was down against the
greenback, franc and the pound.
In European trading, the European currency gained to 1.1243
against the greenback, an increase of 0.3 percent from an early
3-day low of 1.1204. The next possible resistance for the
euro-greenback pair is seen around the 1.135 level. At yesterday's
close, the pair was valued at 1.1223.
The euro edged up to 0.7374 against the pound, off early 2-day
low of 0.7322. The euro-pound pair was trading at 0.7334 at
yesterday's close. The euro is likely to find upside target around
the 0.75 mark.
Bouncing off from its previous low of 1.0869 against the Swiss
franc, the euro rose to 1.0901. If the euro extends rise, it may
find upside target around the 1.10 area. The euro-franc pair
finished Wednesday's trading at 1.0877.
The euro was trading higher at 135.13 against the Japanese yen,
following a decline to 134.95 at 3:00 am ET. On the upside, the
euro may locate resistance around the 136.00 region.
The euro recovered from an early low of 1.4865 against the
loonie with the pair trading at 1.4924. The pair ended yesterday's
trading at 1.4895. Further uptrend may lead the euro to a
resistance surrounding the 1.50 mark.
Looking ahead, Canada and U.S. trade data for July, U.S. weekly
jobless claims for the week ended August 29 and U.S. ISM
non-manufacturing PMI for August are slated for release in the New
York session.
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