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EUR/GBP tumbling after PMIs

FXstreet.com (London) - EUR/GBP has fallen sharply, falling 0.38 percent from session highs of GBP0.8307. The pair is currently trading at GBP0.8307.

Solid European PMIs

Seasonally-adjusted UK Markit/CIPS Purchasing Manager’s Index printed at 57.3 in December, down slightly from November’s 33-month high of 58.1, but still showed solid conditions.

Manufacturing output rose for the ninth month on the trot in December, driven by rising levels of incoming new work and efforts to clear backlogs of work. December data also showed an eighth successive monthly increase in manufacturing employment - the second-strongest in the past two-and-a-half years, only slightly down from November.

The UK numbers followed European PMIs which showed a similarly healthy condition of the composite European manufacturing sector. Eurozone manufacturing PMI rose for the third month running to post 52.7 in December, up from 51.6 in November, in line with the earlier flash estimate.

France was the one rotten apple in the basket, dropping from 48.4 in November to 47.0, its lowest level in seven months.

EUR/GBP tumbling on sterling strength

EUR/GBP opened the session at GBP0.8302, climbing to highs of GBP0.8307 on the solid European data, before heading into a sharp decline. Market liquidity remains thin.

EUR/USD pushes below 1.3700

Having posted an overnight high at 1.3775, EUR/USD has declined steadily throughout the European session to post a low at 1.3690 where it is presently trading.
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