Euro Recovers After French PMI, German PMI Due

The euro advanced against the other major currencies in the early European session on Thursday, after data showed that the French private sector expanded at a moderate pace in May.

Data from Markit showed that the French flash composite output index rose to 51 in May from 50.6 in April. The private sector output grew for the fourth consecutive month in May.

The manufacturing PMI came in at 49.3, up from 48 in April and exceeded the forecast of 48.5. Nonetheless, a reading below 50 indicates contraction in the sector.

The euro rose to 1.1139 against the U.S. dollar, 0.7161 against the pound and 134.77 against the yen, from early lows of 1.1079, 0.7132 and 134.22, respectively.

Against the Swiss franc, the euro advanced to 1.0415 from an early 1-week low of 1.0384.

If the euro extends its uptrend, it is likely to find resistance around 1.14 against the greenback, 0.73 against the pound, 137.50 against the yen and 1.05 against the franc.

At 3:30 am ET Thursday, Markit is set to release Germany’s PMI data for May. The manufacturing indicator is forecast to fall to 52 in May from 52.1 in April. Economists expect the services PMI to fall to 53.9 in May from 54 in April.

The material has been provided by InstaForex Company – www.instaforex.com

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