By: DailyForex.com
Despite some economic news that, for a change, didn’t disappoint, the Euro continues to be under heavy sell pressure. The release of Markit’s PMI data for Germany and the Eurozone area as whole came in better than expected for December. According to Markit, Germany’s PMI for services ticked higher to 56.0 from 55.4; analysts had expected the data to be unchanged. For the Eurozone, the services reading edged up to 54.2 from 53.9 while the composite reading came in at 54.3 from 54.0. Any numbers over the 50.0 threshold show expansion of the sector.
As reported at 11:07 am (GMT) in London, the EUR/USD was trading lower at $1.0742, down 0.09%. The pair is relatively range bound in today’s trading session; today’s low was at $1.0720 while the high was at $1.0773. The EUR/GBP was higher at 0.7329 Pence, a gain of 0.04%; the pair ranged from 0.7319 Pence to 0.7344 Pence.
UK PMI Disappoints
The Services PMI reading for the UK failed to meet analysts’ expectations, however. The reading came in at 55.5 in December from 59.9, while analysts had forecast the reading at 55.6. Many fear that the UK’s proximity to the Eurozone is weighing on the UK economy and the Pound Sterling, as a consequence. As the Pound Sterling appreciates, goods produced in the UK become too expensive for Eurozone consumers. As the Eurozone is the UK’s largest and most relevant trading partner, which is a concern for the Bank of England which is still considering following the lead of the Federal Reserve and raising interest rates.