The latest manufacturing data is in for the eurozone, and it’s more positive than expected. As a result, the euro is gaining ground against many of its counterparts. This might the news that the 18-nation currency region has been waiting for, since it signals that maybe another recession isn’t inevitable after all.
Today, a release of a Purchasing Managers’ Index for the eurozone shows that the situation has improved. PMI rose to 50.7 for October, which is an improvement over the predicted fall to 49.9. The reading remains above 50, which indicates expansion, and is generally considered a better thing for the economy. On top of that, factories in Germany are recovering from a slump last month.
The good news is also helped along by indications that Spain’s economic recovery is picking up steam. While Germany is the large economic driver for the euro region, the periphery has been dragging the eurozone down. Recovery by Spain could go a long way toward getting the periphery out of trouble and increasing the stability of the eurozone.
It’s little surprise that we’re seeing some risk appetite on this news, and that the euro is heading a little bit higher.
At 10:21 GMT EUR/USD is up to 1.2665 from the open at 1.2652. EUR/GBP is up to 0.7910 from the open at 0.7882. EUR/JPY is up to 136.1850 from the open at 135.5190.
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