Euro Holds Its Own After PMI Data

Euro is holding its own against major counterparts right now, following the latest PMI data. The 19-country currency region showed some improvement in factory activity, and the euro is managing to gain ground today, even as worries about Greece continue to draw headlines.

The eurozone PMI came in at a six month high for January, giving a reading of 51.0. A reading of 50 indicates the line between expansion (above) and contraction (below), so it doesn’t mean that the eurozone is exactly expanding at a rapid rate. However, the news is better than it has been, and it’s helping the euro gain some ground against its counterparts, in spite of the continued worries about Greece.
Concerns about Greece continue as the new government issues ultimatums and makes promises. Brinkmanship is the order of the day in Greece, and there are some in the eurozone who think that the Syriza government doesn’t actually realize the magnitude of the problem. While eurozone leaders and Greek leaders alike say they don’t want an exit for Greece, it’s getting harder for them to come to agreement about how to proceed.
At 11:30 GMT EUR/USD is up to 1.1334 from the open at 1.1315. EUR/GBP is up to 0.7546 from the open at 0.7500. EUR/JPY is up to 133.3397 from the open at 132.4400.

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