Euro Mixed After Eurozone Services PMI
April 07 2021 - 4:11AM
RTTF2
The euro showed mixed trading against its major counterparts in
the European session on Wednesday, after the release of a data
showing an expansion in Eurozone private sector activity in
March.
Final survey data from IHS Markit showed that Eurozone private
sector returned to growth in March underpinned by a record increase
in manufacturing output.
The final composite output index rose to 53.2 in March from 48.8
in February. The score was also above the flash estimate of
52.5.
European stocks rose as economic recovery hopes intensified amid
steady progress with coronavirus vaccinations and additional
government stimulus.
Traders await the minutes of the most recent Federal Open Market
Committee meeting for clues regarding when the U.S. central bank
might raise rates.
The euro climbed to 1.1898 against the greenback, its strongest
level since March 23. The euro is seen finding resistance around
the 1.21 mark.
The euro spiked higher to 130.62 against the yen, setting nearly
a 3-week high, and was up from Tuesday's close of 130.28. Should
the euro strengthens further, it is likely to test resistance
around the 133.00 region.
Preliminary data from the Cabinet Office showed that Japan's
leading index increased to the highest level in nearly three years
in February.
The leading index, which measures the future economic activity,
grew to 99.7 in February from 98.5 in January.
The euro rebounded to 1.1054 against the franc, from a weekly
low of 1.1034 set at 3:30 am ET. On the upside, 1.13 is possibly
seen as its next resistance level.
After touching nearly a 2-week high of 0.8624 at 2:30 am ET, the
euro pulled back to 0.8586 against the pound and held steady
thereafter. Further decline in the currency is likely to see
support around the 0.84 level.
Final data from IHS Markit showed that the UK service sector
logged a strong rebound in March as activity, new orders and
employment picked up from February.
The services Purchasing Managers' Index advanced to 56.3 from
49.5 in February. The flash reading was 56.8.
Looking ahead, the U.S. and Canadian trade data for February,
Canada Ivey PMI for March and U.S. consumer credit for February
will be released in the New York session.
The Fed minutes from the March 16-17 meeting are set for release
at 2:00 pm ET.
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