Forex News: Euro, Pound Rises After Eurozone, U.K. PMI Reports

Euro, Pound Rises After Eurozone, U.K. PMI Reports

(RTTNews) - The European currency abd British pound strengthened against other major currencies in the European session on Thursday, after the release of Purchasing Managers' index data from both economies.

Eurozone private sector expanded at the fastest pace in 15 months in August on stronger growth in manufacturing output despite challenges posed by U.S. trade tariffs.

Data from S&P Global showed that the Eurozone HCOB flash composite output index climbed more-than-expected to 51.1 in August from 50.9 in July. The score was seen at 50.7.

Germany's flash HCOB composite output index registered 50.9 in August, up from 50.6 in July. This was the highest score since March and was also above forecast of 50.2.

There was a solid acceleration in manufacturing output, while service sector nearly stagnated in August. The manufacturing PMI climbed to a 38-month high of 49.9 from 49.1, while it was expected to fall to 48.8.

Meanwhile, the services PMI dropped more-than-expected to 50.1 from 50.6 in July. The reading was seen at 50.3.

The preliminary S&P Global showed that the U.K. manufacturing PMI fell from 48.0 in July to 47.3 in August. During the reporting time, the data fell short of the expected 48.3 print.

In the meantime, the U.K. Services PMI unexpectedly exceeded the market prediction of 51.8, rising from 51.8 to 53.6. From the previous reading of 51.5, the Composite PMI increased to 53.0, surpassing the anticipated value of 51.6.

Markets have turned their focus on the comments of Fed Chair Jerome Powell at the Jackson Hole symposium on Friday morning. Markets are also eyeing the weekly initial jobless claims data and monthly flash PMI readings from the U.S. due on Thursday morning that could provide cues on the Fed's likely monetary policy trajectory.

In the European trading today, the euro rose to a 2-day high of 172.36 against the yen, from an early low of 171.52. If the euro extends its uptrend, it is likely to find resistance around the 174.00 region.

Against the U.S. dollar and the Swiss franc, the euro edged up to 1.1663 and 0.9395 from early lows of 1.1625 and 0.9368, respectively. The euro may test resistance around 1.18 against the greenback and 0.95 against the franc.

The pound rose to 1.3472 against the U.S. dollar, from an early 9-day low of 1.3436. The next possible upside target for the pound is seen around the 1.37 region.

Against the euro, the Swiss franc and the yen, the pound advanced to 0.8652, 1.0848 and 198.83 from early lows of 0.8666, 1.0821 and 198.13, respectively. If the pound extends its uptrend, it is likely to resistance around 1.10 against the franc and 201.00 against the yen.

Looking ahead, Canada PPI and raw material prices for July, U.S. weekly jobless claims data, U.S. Philadelphia Fed manufacturing index for August, Eurozone flash consumer confidence for August, U.S. S&P Global flash composite PMI for August, U.S. Philly Fed business conditions for August, U.S. existing home sales for July and U.S. Consumer Board's leading index for July are slated for release in the New York session.

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