Release of flash PMI indices for January from the European Union and the United Kingdom were key data releases of the European morning session today. Data from France and Germany turned out to be mixed with German manufacturing missing estimates and German services beating estimates. Situation looked the opposite in case of French data - manufacturing index beat expectations while services gauge missed. While economists noted that price pressures continue to mount in the German services sector, they have also pointed out that recession in the euro area's largest economy remains highly unlikely. When it comes to UK data, reading also turned out to be mixed with manufacturing beating estimates and services missing. Nevertheless, GBP dipped on the release as it is another piece of data after retail sales and labour market figures that shows the economic situation in the United Kingdom deteriorating.
France
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Manufacturing: 50.8 vs 49.7 expected (49.2 previously)
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Services: 49.2 vs 49.9 expected (49.5 previously)
Germany
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Manufacturing: 47.0 vs 47.8 expected: (47.1 previously)
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Services: 50.4 vs 49.6 expected (49.2 previously)
United Kingdom
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Manufacturing: 46.7.0 vs 45.6 expected: (45.3 previously)
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Services: 48.0 vs 49.9 expected (49.9 previously)
EUR and GBP weakened after mixed PMI releases but the drop in case of GBP outpaced drop in EUR. As a result, EURGBP currency pair can be seen trading higher today. The pair trades 0.6% higher on the day and extends a recovery move launched after a failed attempt at breaking below the support zone in the 0.8725 area, marked with 50-session moving average and previous price reactions. Should bulls remain in control, the nearest resistance zone to watch can be found ranging above the 0.8850 mark.
EURGBP at D1 interval. Source: xStation5
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