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Eurozone: Preliminary manufacturing and services PMIs improve expectations in January

The preliminary index Euro zone integrated PMI has improved to seven-month highs in January at 50.2, above the 49.3 in December and the 49.8 expected by the market. This is the first month in expansion territory after six consecutive months of contraction.

The Services PMI has risen nine tenths, rising to 50.7 in January from the previous 49.8, improving the estimated 50.2. This is its highest level in six months.

The PMI manufacturing is the only indicator that has remained in contraction territory, although it has improved one point to 48.8 from the previous 47.8, reaching his best result in five months. He has also bettered forecasts for an increase to 48.5.

As reported by S&P Global, business confidence jumped higher hinting at a notable improvement in the outlook for next year, while order books showed reduced rates of contraction. Job growth also regained momentum as businesses brace for a better-than-expected year.

EUR/USD Reaction

The EUR/USD has reacted with a rebound of just over 10 pips. After charging to daily lows at 1.0866 on German PMIs, the pair has risen to 1.0883 on European data. At time of writing, the pair is trading above 1.0877, gaining 0.09% daily.

Source: Fx Street

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