- EU enterprise exercise reveals development regardless of COVID-19 fears.
- Highlight on U.S. PMI later at present.
NOVEMBER PMI SURPRISE BEAT PUSHES EURO HIGHER
Eurozone PMI exceeded expectations this morning:
- Composite = 55.8, EST 53.2
- Manufacturing = 58.6, EST 57.3
A studying above 50 is suggestive of an increasing financial system which was anticipated after Germany and France gave some indication to the estimate beat this morning when each nations introduced constructive prints. This will come as a shock to many contemplating the present COVID-19 scenario in Europe, and was mirrored post-announcement with the Euro buying and selling marginally larger towards the dollar.
Closing off 2021 excessive power costs, provide bottlenecks and COVID-19 issues are prone to stay and hinder EU financial development. This is not going to bode properly for Euro bulls and will see additional depreciation towards the greenback.
Supply: DailyFX Economic Calendar
The U.S. dollar gained additional floor on the Euro yesterday after Fed Chair Jerome Powell was reelected. Markets take into account Powell the “hawkish” alternative however in actuality he’s removed from a hawk, which leads me to imagine the greenback rally will appropriate itself short-term. Later at present, U.S. PMI information (see calendar above) might swing momentum again in favor of EUR/USD bears – information dependent.
EUR/USD DAILY CHART
Chart ready by Warren Venketas, IG
Contact and observe Warren on Twitter: @WVenketas