Euro higher after PMI reports

The EUR/USD is higher after the eurozone manufacturing and services report exceeded estimates.

The EUR/USD is trading at $1.3842, up 0.25%, following a number of economic announcements from the eurozone this morning. France reported softer-than-expected manufacturing and services figures, but this was offset by the strong German reports. The manufacturing and service reports came in at 53.3 and 53.1 respectively, both increasing on the month and beating analysts’ estimates. Traders focused on the reports from the eurozone as a whole but it is worth noting that the gap between France and Germany is widening.

We are not expecting any more economic updates from the eurozone, however, later today the US will announce the new home sales report for March at 3pm (London time), and the consensus is for 455,000 new homes to have been built. If the report misses expectations it could push the euro towards the $1.39 mark.

As I mentioned yesterday, if tensions rise in Ukraine, we could see the euro move towards the 100-day moving average of $1.3723.

Spot FX EUR/USD chart

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