EURGBP update after the PMIs

The release of the flash PMI indices for January from the European Union and the United Kingdom were the main data releases for the European morning session today. Data from France and Germany proved mixed. The situation in the French data is diametrically opposite to that of the German figures – the manufacturing index beat expectations while the services gauge came in below estimates. While economists noted that pricing pressures continue to mount in Germany’s services sector, they also pointed out that a recession in the eurozone’s largest economy remains highly unlikely. Turning to UK data, the reading also turned out to be mixed, with the manufacturing sector beating estimates and services coming in below expectations. Nonetheless, the GBP dipped on the release as new data after retail sales and labor market figures showed the economic situation in the UK is deteriorating.


  • Manufacturing: 50.8 vs. 49.7 expected (49.2 previously)

  • Services: 49.2 vs. 49.9 expected (49.5 previously)


  • Manufacturing: 47.0 vs. 47.8 expected: (47.1 previously)

  • Services: 50.4 vs. 49.6 expected (49.2 previously)

United Kingdom

  • Manufacturing: 46.7.0 vs. 45.6 expected: (45.3 previously)

  • Services: 48.0 vs. 49.9 expected (49.9 previously)

The EUR and GBP weakened after mixed PMI releases, but the GBP’s decline exceeded that of the EUR. As a result, the EURGBP currency pair may trade higher today. The pair is trading up 0.6% on the day and extends a rally launched after an unsuccessful attempt to break below the support zone in the 0.8725 area, marked by a 50 session moving average and previous price reactions. If the bulls remain in check, the closest resistance area to watch is above the 0.8850 mark.

EURGBP D1. Source: xStation5

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