BREAKING: EURUSD approaches 1.10 after upbeat PMIs

Flash PMI indices from France and Germany were released at 8:15 am GMT and 8:30 am GMT, respectively. French readings were generally upbeat - manufacturing gauge missed expectations slightly while the services index showed a major beat. Moreover, services index actually improved compared to a month ago while the market expected it to deteriorate slightly. German release was even better with both indices - manufacturing and services - beating expectations. However, unlike in case of French data, neither of German indices managed to improve on month-over-month basis.

France

• Manufacturing: 54.8 vs 55.1 expected (57.2 previously)

• Services: 57.4 vs 55.0 expected (55.5 previously)

Germany

• Manufacturing: 57.6 vs 56.0 expected (58.4 previously)

• Services: 55.0 vs 54.3 expected (55.8 previously)

Market reacted positively to the French release with EURUSD jumping higher. However, magnitude of the move on the main currency pair did not exceed 0.15%. Majority of this gain was erased prior to the release of German data. However, release of solid PMIs from Germany provided another lift for the pair and it is now approaching 1.10 area.

Solid PMIs from France and Germany allowed EURUSD to bounce off the short-term upward trendline. The pair is approaching 1.10 area. Main near-term resistance to watch can be found in the 1.1015 area. Source: xStation5