Today’s Services and Composite PMI for Germany showed that despite of the problems within the Euro-area, not all is as bad as it seems as they came in 0.6% higher than the expected value. Although, having said that as a whole the Euro-zone dropped 0.3% from both previous and expected to 51.4 but anything above 50 is still considered as a positive.
Elsewhere in Europe this morning we have already had both the French and Italian Composite PMI for December followed by the Services PMI. The French data came in stronger than expected but little happened to the rate of the Pound to Euro. The Italian data came out weaker than expected again with little impact to the Pound Euro rate.
The UK manufacturing and construction PMIs over the last few days have both came in weaker than expected. The negativity has caused the recent decline in the Pound to Euro exchange rate from the 1.2900 we saw just before the weekend to the rate we see today, around 1.2740. The UK Services PMI becomes of some significance today after dropping to an 18 month low in October 2014 of 56.2 Since the unexpected low the PMI has only increased from 56.2 in October to 58.6 in November, hopefully the rise continues although it is expected to come in slight weaker than the previous month.
A busy day in the US!
This afternoon in the US we have the USD ISM non-manufacturing composite (Dec), expecting a slight drop, having seen the dramatic increase in November to 59.3 Economists predict it to come in around 58.0 therefore could see the much needed negative data for the US Dollar to weaken off. The Pounds to US dollar is currently sits at it’s lowest since July 2013! (1.5195) This the main market mover for today.
Also in the US this afternoon we have the Factory Orders (Nov) expecting a slight rise from -0.7 to -0.4 which could see the US Dollar gain once again across the board.
Euros to US Dollar continues to weaken off becoming the weakest since the begging of 2006, currently sitting at 1.1915 GBPUSD once again continues to drop, now sitting around 1.5195 the lowest rate for over a year and a half.