Euro Higher on PMI Reports
The Euro edged higher after the release of a slew of PMI reports which predominantly showed better than expected outcomes in November for the Euro area's manufacturing sector. Led by Germany which had a Markit PMI reading of 51.8, above the 51.6 expected, Spain, France and the European Union as a whole all showed improvement in their manufacturing sectors last month. The only major EU nation to miss the mark was Italy, which had a reading of 48.6, below the 48.8 forecast and the 49.2 reading from the previous month. With a 50.0 threshold which separates an expanding economy from an contracting one, Italy is the only major sovereign in the Eurozone which has an economy that is in jeopardy.
As reported at 10:39 am (GMT) in London, the EUR/USD was trading at $1.1345, up 0.24%; the pair has ranged from a trough of $1.13162 to $1.13798. The EUR/GBP was trading at 0.8906 Pence, up 0.32% and off the session peak of 0.89118 Pence.
Sentiment Improves for Higher Risk Currencies
In Argentina, after what some might consider a fruitful G20 summit, higher risk currencies like the Aussie and Kiwi Dollars edged higher in London trade on Monday. Both are rallying on the backs of the trade war cease-fire which was put forth by Presidents Trump and Xi. Analysts say that the de-escalation of trade rhetoric is certainly welcome news to FX market players and clearly helps to improve sentiment for currencies which are tied to the fate of the Chinese economy. The AUD/USD was trading at $0.7377, up 0.97%; the pair is moving off the session peak of $0.73935. The NZD/USD was trading higher at $0.6918, up 0.59%, and off the session high of $0.69306.