Euro Erases Losses on Services PMI Reports

The euro rose today, erasing the previous losses, against all of its most-trading counterparts after the report showed that the European services industries expanded, suggesting that concerns for Europe’s economy is exaggerated and the recovery gains momentum.

The good data overshadowed the concerns that the Moody’s Investors Service may downgrade Ireland’s credit rating. The Eurozone services purchasing managers’ index advanced to 54.1 in September from the previous estimate of 53.6. The separate reports for Germany and Italy also showed the improvement.

EUR/USD rose from 1.3686 to 1.3772 as of 10:59 GMT today, following the slump to 1.3637. EUR/JPY advanced from 114.07 to 114.78 after it reached the intraday high of 115.10.

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