Euro higher new levels in two years, the Asian today during the trading session, but quickly retreated after news that came from the purchasing managers index of the eurozone, which showed a surprise contraction in economic activity in the region. EUR/USD rose to its highest level at 1.3833 in last Asian trading session helped both increase risk appetite and stop loss points hit on the level of 1.3800 to dash the pair higher amid weak trading volume in Tokyo trading session.
But soon the pair reversed its direction after the result of the purchasing managers index of the euro zone down indicates the economic slowdown especially in the services sector in the Alero. The PMI reading was generally weak in all sectors, where the PMI fell to the French industrial sector to below the level of 50 that represents the line between contraction and prosperity, low level of 50.3 49.4 while service sector activity in France to 50.2 from 51.2. In Germany, the industrial sector of akobat some relatively strong record of industrial purchasing managers index in Germany the level of 32.0 versus 51.6 altokaatb, but dropped in this service sector index sharply to 52.3 versus expectations of a reading of 53.8.
In General, the purchasing managers index for the euro area industrial sector stable at 51.3 for altokaatb read 51.4, but service sector dropped to 50.9 versus expectations of a level of 52.3. This is the first month of decline in the index since March, as the biggest violation of expectations since October last year. The news that the recovery in the euro zone may start to stop and that the recent rise in the euro could exacerbate this trend.
The European Central Bank does not care to now the euro's strength, but can change Mario Draghi, Governor of the Bank of the tone at the news conference next month, the Central Bank forecast that economic recovery in noncompliance risk of slowdown. Many analysts noted that part of the strength of the euro is due to the fact that the European Central Bank reduces the public budget is quiet but steady as the central banks of the three other major central banks to expand their balance sheets. So it will be important to see if it is assumed the position of cyclists more adapted at a meeting next month.
At the same time, the EUR/USD fell below the level of 1.3800 in the wake of this news, but managed to find buyers before the level of 1.3750 remained within the level of 1.3800. The currency continues to show a great deal of flexibility in light of weak economic data, but the IFO index came on down, has a patch to the 1.3700 level with the end of the week.
On the other hand, the report alikher which was released too early today is the PMI of China's manufacturing sector rose to 50.9 from 50.5. This was the third consecutive month which this index reading above 50, which is the boundary between contraction and growth, this shows some comfort for investors who are still affected by yesterday's news about big debt write-off in Chinese banks. The Australian dollar initially rose after the news, but fell after over hearing had eventually half-heartedly accepted, was trading near its lowest levels today, where the selling pressure continues.
At us today, there is a lot of data, where not only is the Declaration of the trade balance and the unemployment rate data and new homes. And likely to be affected by the closure of the US Government in recent times and will be difficult to predict how the market will react. At present, the relative strength of the US dollar will continue its work in the currency market and the current trend may accelerate with traffic today.
