Euro Gets a Boost From Positive PMIs

The euro surged to a one-week high against the dollar Thursday, as a pickup in business activity boosted investor confidence in the euro zone’s economic recovery.

The data also helped European stocks reverse early losses, which came following a slowdown in China’s manufacturing sector.

The euro climbed 0.6% against the dollar to trade at $1.3643, its highest since Jan. 16. The single currency also gained against the yen and sterling.

Date firm Markit said its preliminary composite Purchasing Managers Index for January—a measure of activity in the manufacturing and services sectors—rose to 53.2 from 52.1 in December, signaling the most rapid expansion since June 2011. Expectations had been for a more modest rise to 52.5.

via WSJ

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza