Euro’s Lift Temporary after PMI Release - 24 November 2015

As sentiment for the Dollar gets support on news that the Fed could make an unexpected announcement today, the Euro has suffered in its wake. However, in early trade, the Euro steadied to a small degree after the latest Euro area PMI reports showed some across-the-board improvement in Germany and the Eurozone; France’s PMI for manufacturing also beat expectations.

As reported at 9:51 am (GMT) in London, the EUR/USD was trading at $1.0623, edging away from the session low of $1.0599; the pair’s upper end was at $1.0645. The EUR/GBP was just off the session high at 0.7011 pence, dipping from 0.7018 pence at the peak.

German GDP Looms

Despite the upbeat PMI reports for November, the consensus still continues to call for easing from the European Central Bank. As a result, investors are only providing very limited and very short term support for the common currency. Tomorrow, markets will watch for the release of GDP data from Germany’s statistics bureau. On an annual basis, Germany GDP is expected to be maintained at 1.8% while for the quarter, estimates call for the rate of 0.3% to be held. Any positive surprise could provide a short-term lift for the Euro on expectations of a spillover effect for the Euro area as a whole. Germany is the largest and strongest economy in the Eurozone and any positive economic news tends to benefit the Eurozone.

Barbara Zigah

After working on Wall Street, Barb began her second career as a freelance writer at Daily Forex, where the CEO recognized fresh, untapped potential and was willing to give her a try. She’s never looked back. Since then, she’s worked steadily as a freelance writer and editor in the financial services and Forex-related industry.