23 Jan 2014
Flash: Euro bolstered on PMI's - BBH
FXstreet.com (Guatemala) - Marc Chandler, Global Head of Currency Strategy at Brown Brothers Harriman noted recent bullishness from EZ sector.
Key Quotes:
"The euro has been bolstered by the flash PMI readings. The euro area manufacturing PMI rose to 53.9 from 52.7 in December. This is the best reading since May 2011. The service PMI rose to 51.9 from 51.0, which is a 4-month high. The composite rose to 53.2 from 52.1 and is the sixth month above the 50 boom/bust level.Of note, strong gains were seen in new business."
"The flash report includes only Germany and France. Given the general recovery in the periphery, the risk is on the upside for the final report. German manufacturing goes from strength to strength. The 56.3 reading compares with 54.3 in December. The service PMI was unchanged at a firm 53.5. New business, exports, and output were particularly strong."
Key Quotes:
"The euro has been bolstered by the flash PMI readings. The euro area manufacturing PMI rose to 53.9 from 52.7 in December. This is the best reading since May 2011. The service PMI rose to 51.9 from 51.0, which is a 4-month high. The composite rose to 53.2 from 52.1 and is the sixth month above the 50 boom/bust level.Of note, strong gains were seen in new business."
"The flash report includes only Germany and France. Given the general recovery in the periphery, the risk is on the upside for the final report. German manufacturing goes from strength to strength. The 56.3 reading compares with 54.3 in December. The service PMI was unchanged at a firm 53.5. New business, exports, and output were particularly strong."