Euro Rises As Eurozone Manufacturing Growth Improves
The euro strengthened against the other major currencies in the Asian session on Friday, after data showed that the Eurozone manufacturing growth improved more than initially estimated in March.
Data from Markit showed that the Eurozone factory Purchasing Managers' Index rose to 51.6 in March from 51.2 in February and above the flash score of 51.4.
Germany's factory PMI came in at 50.7 in March, up from February's 50.5. This was the second-weakest reading in 16 months. Nonetheless, it was above the flash score of 50.4.
In France, manufacturing activity returned to negative zone in March. The manufacturing PMI fell to 49.6, in line with preliminary estimate, from 50.2 in February.
In the Asian trading, the euro showed mixed trading against its major rivals. While the euro fell against the yen, it held steady against the U.S. dollar, the pound and the Swiss franc.
In the European trading, the euro rose to a 16-month high of 0.7965 against the pound, from an early low of 0.7918. The euro may test resistance near the 0.80 region.
Data from Markit Economic showed that the U.K. Markit/Chartered Institute of Procurement & Supply Purchasing Managers' Index for manufacturing rose to 51.0 in March from February's 34-month low of 50.8. Economists had expected the index to climb to 51.2.
Against the Canadian and the New Zealand dollars, the euro advanced to more a than 2-week high of 1.4851 and a 3-day high of 1.6517 from early lows of 1.4755 and 1.6407, respectively. If the euro extends its uptrend, it is likely to find resistance around 1.52 against the loonie and 1.69 against the kiwi.
Against the U.S., the yen and the Swiss franc, the euro edged up to 1.1401, 128.16 and 1.0949 from early lows of 1.1367, 127.43 and 1.0924, respectively. The euro is likely to find resistance around 1.15 against the greenback, 130.00 against the yen and 1.10 against the franc.
Meanwhile, the euro advanced to a 3-day high of 1.4884 against the Australian dollar, from an early low 1.4780 and held steady thereafter.
Looking ahead, U.S. jobs data, U.S. ISM manufacturing PMI and Canada RBC manufacturing PMI, for March, U.S. construction spending for February, U.S. University of Michigan's final consumer sentiment index for March and U.S. Baker Hughes rig count data are slated for release in the New York session.
At 12:00 pm ET, Federal Reserve Bank of Cleveland President Loretta Mester is expected to speak about the economic outlook and monetary policy at the New York Association for Business Economics, in New York.
The material has been provided by InstaForex Company - www.instaforex.com