The euro showed mixed trading against the other major currencies in the early European session on Wednesday, following the release of Eurozone PMI for March.
Data from Markit Economics showed that Eurozone manufacturing sector expanded more than initially estimated as growth accelerated in Germany, Spain, Italy and the Netherlands. The Purchasing Mangers’ Index rose to a 10-month high of 52.2 in March from 51 in February. The flash score was 51.9.
German manufacturing growth in March was faster than estimated earlier, marking the strongest improvement in eleven months. Markit/BME Germany Manufacturing Purchasing Managers’ Index climbed to 52.8 from 51.1 in February. The flash reading for the index was 52.4, released on March 24.
Italy’s manufacturing sector expanded at the fastest pace in 11 months in March. The Markit/ADACI Purchasing Mangers’ Index rose to 53.3 in March from 51.9 in February. This was the highest score since April 2014. It was forecast to rise to 52.1.
In the Asian trading, the euro held steady against the other major currencies.
In the early European trading, the euro rose to 0.7266 against the pound, from an early low of 0.7229. If the euro extends its uptrend, it is likely to find resistance around the 0.74 area.
Data from Markit Economics and the Chartered Institute of Procurement & Supply showed that British manufacturing sector expanded at the fastest pace in eight months during March on stronger growth in production and new orders that led to increased hiring. The Markit/CIPS Purchasing Managers’ Index rose to 54.4 from 54 in February, which was revised down from 54.1. The latest reading was in line with economists’ expectations.
Pulling away from an early high of 1.0791 against the U.S. dollar, the euro dropped to session’s low of 1.0719. On the downside, 1.04 is seen as the next support level for the euro.
The euro fell to 1.0429 against the Swiss franc, from an early low of 1.0457. The euro may test support near the 1.01 region.
Data from the Credit Suisse showed that Switzerland’s manufacturing sector contracted for the third consecutive month in March. Although the procure.ch Purchasing Managers’ Index rose to 47.9 in March from 47.3 in February, the score was below 50 indicating contraction in the sector. The reading was expected to rise to 47.5.
Against the yen, the euro slipped to 128.75 around 3:45 am ET, from an early high of 129.44. Thereafter, the euro held steady against the yen.
Data from Markit Economics showed that Japan’s manufacturing sector slowed in March but continued to expand, with a PMI score of 50.3. That’s down from 51.6 in February, although it remains barely above the boom-or-bust line of 50 that separates expansion from contraction.
Looking ahead, U.S. ADP private sector employment data, U.S. ISM manufacturing PMI and Canada RBC manufacturing PMI- all for March are slated for release in the New York session.
At 9:00 am ET, U.S. Federal Reserve Bank of San Francisco President John Williams will participate in a panel discussion titled “Financial Stability: How Essential Financial Stability be to Central Banks?” at the Federal Reserve Bank of Atlanta’s financial markets conference “Central Banking in the Shadows: Monetary Policy and Financial Stability Post crisis,” in Stone Mountain.
About an hour and a half later, at the same conference in Stone Mountain, U.S. Federal Reserve Bank of Atlanta President Dennis Lockhart will participate in a panel discussion titled “Monetary Policy: Will the Traditional Banking Channel Remain Central to Monetary Policy?”.
The material has been provided by InstaForex Company – www.instaforex.com