RTTN:Euro Advances As Manufacturing PMI Reports From Euro-area Signal Improvement
In the early European session on Friday, the euro firmed against most major currencies as PMI reports from Eurozone, Germany and Italy showed improved manufacturing activity in the region.
Eurozone manufacturing activity contracted less than initially estimated in January, final data from Markit Economics showed today.
The Final manufacturing Purchasing Managers Index came in at 47.9 in January, up from 46.1 in December and slightly above the flash estimate of 47.5.
The index reading reached the highest level in 11 months, but the sector remained in negative territory for one-and-a-half years. There remained wide disparities between the performances of the member nations, it showed.
An indicator of Germany's manufacturing sector performance improved more than primarily estimated in January, detailed results of a survey by Markit Economics revealed today.
The seasonally adjusted purchasing managers' index for the manufacturing sector rose to 49.8 in January from 46 during December.
The Italian manufacturing sector contracted at the slowest pace in ten months in January as output and new orders contract at slower rates, data from a survey by Markit Economics and ADACI showed.
The seasonality adjusted purchasing managers' index for the manufacturing sector rose to 47.8 in January from 46.7 in December. Economists were looking for a reading of 47.4.
The euro advanced to a 14-1/2-month high of 1.3657 against the dollar, compared to Thursday's close of 1.3578. If the euro extends gain, it will break 1.375 level.
Against the sterling, the euro spiked up to a 13-1/2-month high of 0.8610 and the euro may find resistance around 0.87 level. At yesterday's close, the pair was worth 0.8565.
The euro resumed its early rally against the yen, hitting 126.08, its strongest level since April 2010. On the upside, the euro may break 127.00 level. The euro-yen pair ended Thursday's deals at 122.39.
The unemployment rate in Japan came in at a seasonally adjusted 4.2 percent in December, the the Ministry of Internal Affairs and Communications said on Friday.
The headline figure missed forecasts for 4.1 percent, which would have been unchanged from the November reading.
Against the Canadian dollar, the euro strengthened to 1.3666 for the first time since December 2011. The euro may face next resistance level around 1.375. The pair ended yesterday's deals at 1.3545.
The euro climbed to a 2-day high of 1.6286 against the kiwi and near a 14-month high of 1.3196 aussie with 1.635 and 1.325 likely to seek as next upside target levels, respectively. The euro ended yesterday's trading at 1.6191 against the kiwi and 1.3028 against the aussie.
Eurozone's jobless rate for December and inflation estimate for January are due shortly.
Besides the all-important non-farm payrolls data for January, traders will watch keenly on the University of Michigan's consumer confidence for January, construction spending for December and the ISM manufacturing data for January in the upcoming North American session.
