EURUSD Trades above 1.1200 as Dollar Weakened

US dollar weakness helped a lot of major currencies, including the Euro to gain bids

France Purchasing Managers Index (PMI) Manufacturing released by Markit Economics registered a reading of 48.6 in August 2015 whereas the market was expecting it be 49.7

France services PMI registered a decrease from 52 to 51.8

German manufacturing PMI rose from 51.8 to 53.2, and services PMI declined from 53.8 to 53.6

Euro Zone manufacturing PMI came in at 52.4, more than the market expected, and services PMI rose from 54 to 54.3

Euro Zone Manufacturing PMI

Earlier during the London session, the Euro zone Manufacturing Purchasing Managers Index (PMI), which captures business conditions in the manufacturing sector was released by the Markit Economics. The forecast was slated for a minor decrease last reading of 52.4 to 52.2 in August 2015. However, the outcome was on the higher side, as the Euro zone Manufacturing Purchasing Managers Index remained unchanged at 52.4.

Commenting on the same the Senior Economist at Markit, Rob Dobson mentioned that the “The flash PMI suggests that the Eurozone is still experiencing one of its best periods of economic growth and job creation during the past four years. GDP growth is tracking close to 0.4% so far in the third quarter, slightly above the 0.3% seen in quarter 2”.

German Manufacturing PMI

The German Manufacturing Purchasing Managers Index was also published today during the London session. The forecast was slated for a decrease from the last reading of 51.8 to 51.7. However, the outcome above the forecast, as the German manufacturing PMI increased to 53.2, and the services PMI missed the mark and declined to 53.6 from 53.8 in August 2015.

Technical Analysis – EURUSD

The Euro enjoyed a decent run against the US dollar, and traded above a major resistance of 1.1200. However, the EURUSD pair is facing sellers around the 1.1280 area, which might cause a pullback in the near term.

Yours,
Vladimir