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