Euro firms up following China GDP and ahead of PMIs

The euro is slightly higher against all of its major trading partners following a better than expected GDP reading from China and expectations for a rebound in eurozone PMI data.  The eurozone could be a big beneficiary to a China rebound.  Sentiment has been slowly improving for China as expectations run high for a trade deal to be finalized in the next couple months between the US and China.  China’s stimulus is starting to help some of the more recent data releases are starting to ease slowdown concerns.

Tomorrow’s eurozone PMI data is expected to show rebounds in German, French, and eurozone manufacturing, while the services readings could come in mixed.  Germany is still likely to remain in contraction on manufacturing, but any upside surprises could help spark a move higher for the euro.

 

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Ed Moya

Ed Moya

Senior Market Analyst at OANDA
With more than 20 years’ trading experience, Ed Moya is a market analyst with OANDA, producing up-to-the-minute fundamental analysis of geo-political events and monetary policies in the US, Europe, the Middle East and North Africa. Over the course of his career, he has worked with some of the world’s leading forex brokerages and research departments including Global Forex Trading, FX Solutions and Trading Advantage. Most recently he worked with TradeTheNews.com, where he provided market analysis on economic data and corporate news. Based in New York, Ed is a regular guest on several major financial television networks including BNN, CNBC, Fox Business, and Bloomberg. He is often quoted in leading print and online publications such as the Wall Street Journal and the Washington Post. He holds a BA in Economics from Rutgers University. Follow Ed on Twitter @edjmoya ‏
Ed Moya