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Euro rises after positive PMI, confidence data

Euro rises after positive PMI and confidence data

The euro currency rose during Monday’s trading after a better than forecast rise in the services activity in the euro zone, which partially offset the continued decline in the manufacturing activities in the bloc.

The EURUSD pair hit today's high at 1.1205 and opened today at 1.1188, while currently trading at 1.1195. Against the pound, the European currency was down by 0.23 percent at 0.8516.

This rise in the euro currency was a result of the release of positive economic data, as the Eurozone’s composite PMI rose to 50.9 points in December, up from 50.6 in November, after the euro area’s final services PMI was revised up to 52.8 from a preliminary of 52.4. In November, the services gauge recorded 51.9.

It should be noted that the current reading of the index is approaching 50, which is the level between growth and contraction.

Current Eurozone data show that the region's economy will struggle to grow to a level above the 0.1 percent, which it achieved in the last three months of 2019.

Another economic report from the euro area showed that the Sentix Investor Confidence rose to 7.6 in January from 0.7 in December. That was more than double of analysts’ projections of 3.0.

On the other hand, the dollar index fell to 96.31, amid the escalating tensions between the United States and Iran in the Middle East.

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