Germany PMI Data Beats Estimates
- Markit Manufacturing PMI Flash (Jan) = 60.5 Act vs 57 Exp
- Markit Services PMI Flash (Jan) 52.2 Act vs 48 Exp
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Manufacturing data continues its strong run whereas services had dipped below the 50 mark in December, indicating a more pessimistic outlook for the services sector. Today’s surprise in the data places the services sector above the 50 mark once again.
PMI data includes a headline number, indicating the overall health of the economy, and sub-indices, providing insight into other components that makeup GDP, inflation, capacity utilization, exports, unemployment and inventories. Financial and corporate professionals make use of PMI data to garner a better understanding of where economies are headed, to uncover opportunities.
Immediate Euro Reaction
The Euro dropped before the release only to shoot back up before recovering to trade around similar levels to when the data was released. Slight volatility but nothing expected to be long lasting. Markets look ahead to the Fed interest rate decision later this week as a major potential EUR/USD event.
EUR/USD 5 minute chart
Source: IG, prepared by Richard Snow
— Written by Richard Snow for DailyFX.com
Contact and follow Richard on Twitter: @RichardSnowFX
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.