Euro Continues to Gain as Better Data Comes In

Euro is getting a boost today, moving through the 1.3600 level against the US dollar as better economic data comes in. Signs of stabilization in the euro zone are supporting the 17-nation currency.

The latest economic data out of the eurozone is quite encouraging, pointing to stabilization in the region. First of all, the decline in eurozone manufacturing activity eased for the month of January. On top of that, inflation and unemployment both appear to have stabilized. The news is welcome, since it indicates that a recovery is on the way for the eurozone, with embattled countries able to pay their debts with more ease.

Markit reports that eurozone PMI rose to 47.9 from 46.1 in the month of January. Even though it doesn’t point to growth, it points to the healthiest reading in more than a year, and that is providing support for the euro. Also helping the euro is the fact that manufacturing data from a number of Asian countries has improved. The news is welcome, and indicates that the eurozone’s improvements could be part of a broader global economic recovery.

At 14:29 GMT EUR/USD is up to 1.3627 from the open at 1.3578. EUR/GBP is up to 0.8617 from the open at 0.8562. EUR/JPY is up to 125.1905 from the open at 124.5245.

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