According to Markit, France is contracting at a slower pace in July. The figures for both the manufacturing and the services sector exceeded expectations, even though they are not in growth territory yet.
EUR/USD responds with a jump, after sliding lower earlier.
Manufacturing rose from 48.4 to 49.8 points, above predictions of 48.9 points. Services advanced from 47.2 to 48.3, also beating expectations of 47.7 points. Both are a 17 month high.
EUR/USD was falling from the highs of 1.3239 yesterday down to 1.3190 before the publication, and it is now at 1.3215, a nice 25 pip jump. Next up: the release of Germany’s PMIs. Here, services PMI is expected to remain above 50 and even advance.
Update: German PMIs both positive – EUR/USD breaks to new highs, approaches important resistance
Resistance appears at 1.3250, and support at 1.3175. For more lines and analysis, see the EUR to USD forecast.
Recently, French president Hollande urged his fellow countrymen to cheer up, as France has been noted as one of the most pessimistic countries in the Western world. He also talked about the end of the French recession. GDP data is due in early August.
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