The Euro bounced higher against the US Dollar on economic data that, while not exactly glowing, at least wasn't a total disappointment. Manufacturing PMI reports from the Eurozone were overall better than expected with the exception of Germany's April PMI, which missed the mark with a reading of 44.4 against a forecast of 44.5. Germany did see an improvement in retail sales in March (year-over-year), however, with a -0.2 reading against a predicted -0.4. France, Italy and Spain, the three largest economies within the Eurozone (after Germany) also saw improved Manufacturing PMI readings which helped to boost the Euro-area PMI to 47.9, slightly better than the 47.8 expected.
As reported at 11:05 am (GMT) in London, the EUR/USD was trading higher at $1.1201, up 0.0268%; the pair has ranged from a low of $1.11913 to a peak of $1.12191. The EUR/GBP was trading at 0.8582 Pence, up 0.0093% and off the session peak of 0.85902 Pence.
Markets Await Carney's Comments
In the UK, the Markit PMI reading for the UK Construction sector came in at 50.5, above the 50.3 which had been predicted. Market players are waiting for the Bank of England's rate decision which is due out shortly. While analysts polled don't foresee any changes to policy in the short term, they will be scrutinizing the commentary from the BoE Governor, Mark Carney, for any potential shift in the bank's rate expectations, especially as they relate to the Brexit. The GBP/USD was trading at $1.3052, up 0.023% and well off the session high of $1.3080.