Euro Rebound as Eurozone Manufacturing Expands

The euro rose today, erasing its previous losses, after a report showed that eurozone manufacturing improved this month, easing concerns about the negative impact of the European financial crisis on the region’s economy.
Final eurozone PMI figure was 48.8 in January, near the flash estimate of 48.7 and a solid increase from the December reading of 46.9. Germany with its robust growth was the main contributor to the increase, followed by Australia and Netherlands that demonstrated a modest increase of output. Greece, unsurprisingly, showed the worst performance as its production was declining with the record pace. The Stoxx Europe 600 Index advanced as much as 1.5 percent.
EUR/USD was up from 1.3083 to 1.3135 as of 12:23 GMT today after falling to the daily minimum of 1.3026. EUR/JPY went higher from 99.78 to 99.95, following the drop to 99.24 — the lowest level in more than a week.

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