Euro flat after mixed services reports

The euro is broadly unchanged versus the US dollar after services reports from the region were both hot and cold.

A solid services purchasing managers index (PMI) from Spain was offset by soft figures from France, and EUR/USD is now trading at $1.3597, up just 0.07%. Spain posted a services PMI reading of 54.2 for December, whereas analysts were expecting a level of only 51.5, and this was the highest reading since 2007. On the other hand, France revealed a figure of just 47.8, which indicates contraction territory.

This comes after French manufacturing PMI dropped to a seven-month low last week. France is the second-largest economy in the eurozone, but traders are worried the cracks are beginning to show.

At 3pm (London time), the US will announce the non-manufacturing PMI and factory orders reports. The Federal Reserve is already reducing the size of its monthly stimulus package, and if these reports come in above expectations we could see traders sell the euro and buy the US dollar.

Tonight, the Federal Reserve will nominate its next chairperson. Janet Yellen virtually has the job, so the nomination is effectively a formality. We are likely to see low volumes ahead of the 10.30pm (London time) announcement.

Spot FX EUR/USD chart

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

CFD’s zijn complexe instrumenten en brengen vanwege het hefboomeffect een hoog risico mee van snel oplopende verliezen. 79% van de retailbeleggers lijdt verlies op de handel in CFD’s met deze aanbieder.
Het is belangrijk dat u goed begrijpt hoe CFD's werken en dat u nagaat of u zich het hoge risico op verlies kunt permitteren.
CFD’s zijn complexe instrumenten en brengen vanwege het hefboomeffect een hoog risico mee van snel oplopende verliezen.