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EUR/GBP rebounds from post-PMI declines

FXstreet.com (London) - EUR/GBP has rebounded from lows after hitting GBP0.8271. The pair climbed on solid Eurozone PMI numbers to GBP0.8307 before falling on the UK print. EUR/GBP is currently trading at GBP0.8288.

Robust PMI numbers

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 lacking direction in thin trading

The EUR/GBP pair is down 0.18 percent on the session so far, but is struggling to find conviction in thin markets.

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