The Euro is on the up. This morning it is trading higher against the Pound, Dollar, and Yen on the back of positive data coming out of China, where the HSBC Manufacturing PMI hit 50.4, a thirteen month high. Sentiment is now relatively optimistic within the markets as a result of this Chinese data, with many market participants believing this signals an end to China’s slowdown and potentially a return to China’s customary 8% plus growth.
A positive Chinese outlook is encouraging for the Euro and coupled with the anticipation that an agreement on Greece will soon be reached, these two factors have led to a slightly improved Euro this morning. European PMI data has also contributed to the Euros gains as figures released were slightly better than markets had originally feared. German Manufacturing PMI hit 46.8 surpassing expectations of 46.0 and EU Markit Manufacturing PMI also did better than expected, recording an improvement to 46.2, although EU Markit Services PMI did decline this month to 45.7.
Sterling has dropped from 1.2432 against the Euro this morning to its current low of 1.2385. The Euro is also up against the Dollar today hitting a high of 1.2883, after gradually increasing from 1.2831 last night. It is possible that we could see further movement in the Euro this afternoon as EU Consumer Confidence figures are due out at 15:00, however trading volumes are likely to be lower today given that it is Thanksgiving in the US.