Even with the latest drop in the PMI, the euro is still surging in Forex trading. Indeed, the 17-nation currency continues to defy expectations and move higher as risk appetite improves and Forex traders become more confident about the eurozone economy.
According to the latest data from Markit, the eurozone PMI dropped to 51.5 in October, down from 52.2 in September. However, anything above a 50.0 indicates economic expansion, so the eurozone is still in a state of economic growth — even if it has slowed somewhat. The encouraging news represents the fourth month in a row that the 17-nation currency region has been in a state of economic expansion, and that is providing support.
It’s also helping that risk appetite in general seems to be back in vogue. The latest unemployment claims data in the United States shows that unemployment continues to drop. The government shutdown had its impact on the economy, but the United States seems to be overcoming that difficulty.
There’s enough good news, and with gold slightly higher, that the euro is finding support across the board in currency trading today.
At 13:10 GMT EUR/USD is up to 1.3815 from the open at 1.3776. EUR/GBP is up to 0.8546 from the open at 0.8523. EUR/JPY is up to 134.3585 from the open at 134.7450.
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