(MENAFN– ecpulse)
The euro has jumped on Thursday, hitting session’s highs against the dollar and the yen lifted by a more optimistic outlook for the economic recovery in the euro-area following upbeat preliminary releases on business activities.
The preliminary set of January’s Eurozone PMI figures headlined the economic calendar in Europe today, where the region’s Purchasing Managers’ Index showed manufacturing- and service-sector growth accelerated in January.
According to Markit report, Euro zone’s composite output index rose to a 31-month high of 53.2 in January, as growth picked up in Germany and the rate of decline eased in France.
Euro zone’s manufacturing PMI rose to a 32-month high of 53.9, while services PMI advanced to a four-month high of 51.9. Manufacturing activity in Germany expanded at the fastest pace since May 2011 this month at 56.3.
EURUSD pair is currently trading at $1.36351 up 0.67 percent from an opening of $1.35456. The pair so far recorded a session high of $1.36453 set after the release of Euro-are PMI data.
The pair was likely to find support at 1.3520 and resistance at 1.3623.
The euro rose to one-week highs against the yen, trading at ¥142.250 up by 0.46 percent. The euro also hit session highs against the pound, with EURGBP rising 0.53 percent to trade at 0.82135.
The U.S. dollar underperformed in European trade after data showed strength in Eurozone manufacturing, services sectors and ahead of reports on jobless claims and housing prices that could add to Federal Reserve tapering expectations.
The Japanese yen strengthened boosted by haven demand amid raising concerns following the weak Chinese data. The yen can often strengthen in the face of economic uncertainty, in part because it’s seen as a safe haven.
Yen gained 0.24 percent against the dollar, to trade at ¥104.303, after hitting a session low of ¥104.206. The USDJPY pair opened at ¥104.510. The pair is expected to face support at ¥103.80 and resistance at ¥105.220.
The Canadian dollar suffered on Thursday, weighed by the Bank of Canada dovish statement, as it kept its policy interest unchanged. On Wednesday, the BoC left the door open to a possible interest rate cut and said the loonie remained strong despite recent depreciations.
The U.S. Dollar rose sharply against the loonie for a third consecutive session, last trading at 1.11394 after opening at 1.10831. The USDCAD pair so far hit a session high of 1.11725.
Meanwhile, Australian dollar extended losses to European trades after disappointing Chinese PMI data, amid worries about performance in the region’s largest economy, and Australia key trading partner.
The AUDUSD pair fell sharply by 0.63 percent against the dollar to trade at $0.87885 after starting the day at $0.88477.The pair so far hit a session low of $0.87749.
Sterling extended rally, still buoyed by Wednesday`s UK unemployment data, which showed joblessness rate slid closer to the Bank of England’s target to start considering a rise in interest rates.
Sterling moved sharply to the upside; stabilizing above the 1.5600 support level, while braking above resistance level of 1.66024 to record a session high of 1.66149 could trigger a strong rally to the upside.
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