Euro Sinks as Eurozone PMI Data Disappoints


(MENAFN- DailyFX)

Talking Points:

  • Euro-zone Services PMI 51.6 in Jan vs. 51.9 Flash Estimate
  • Euro Sinks Against the U.S. Dollar Following PMI Report
  • Spotlight Now on This Week’s ECB Policy Announcement

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The Euro-Zone Services Purchasing Manager Index fell to 51.6, slightly below the flash estimate of 51.9 but above the 51.0 outcome recorded in December. January's result marks the highest outcome since October 2013. The Composite PMI print likewise disappointed, with the final result revised to 52.9 from the 53.2 reading estimated two weeks ago.

The Euro fell against the U.S. Dollar as the data crossed the wires. The move may reflect speculation that the European Central Bank is preparing to expand monetary policy support, according to DailyFX Chief Currency Strategist John Kicklighter. The ECB will deliver its monthly policy announcement tomorrow, followed by a press conference with central bank President Mario Draghi.

EUR/USD 1-Minute Chart. February 5, 2014

Euro_Sinks_as_Eurozone_PMI_Data_Disappoints_body_Picture_1.png, Euro Sinks as Eurozone PMI Data Disappoints

Chart created by David Maycotte using Marketscope 2.0.

-- Written by David Maycotte, DailyFX Research Team. Questions, comments or concerns can be sent to dmaycotte@FXCM.com.

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original source


DailyFX

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