The euro climbed against the US dollar on Monday, following the release of positive PMI in the services sector out of the first four-largest economies in the single currency zone.
EUR/USD reached its highest point today at 1.3299 at 7:49 GMT, after which consolidation followed at 1.3288. Support for the pair was anticipated at July 29th low, 1.3238, while resistance was to be encountered at August 1st high, 1.3309.
Earlier today it was reported that Services PMI in Spain contracted at the slowest rate in two years to 48.5 in the month of July, slightly above the expected reading of 48.4, and following Junes value of 47.8. The indicator remained in the contraction zone for the 25th month in a row, but increased in value for the third consecutive month. Sub indexes of new orders and business activity registered a lesser drop.
In Italy the Services PMI shrank at a much slower pace in July, according to data by Markit Economics. The activity indicator rose to 48.7 in July, marking its highest point in 26 months, as in June the PMI stood at 45.8. Despite the increased production of goods in the country in July, Italys private sector was in proximity to stagnation during the beginning of the third quarter, according to an expert from Markit.
French Final Services PMI stood at 48.6 in July, above projections of a value of 48.3, as in June the reading showed 48.3. All these indexes remained below the crucial level of 50.0, which separates contraction from expansion.
On the other hand, the Final Services PMI in Germany advanced in July in comparison with June, up to 51.3 from 50.4, being the only indicator to remain in the zone of expansion, implying that business activity in the country continued improving. Analysts had projected the index will show a value of 52.5. Julys reading was the highest in five months and the second consecutive one in the zone of expansion.
Additionally, Euro zones Final Services PMI stood at 49.8, slightly above the expected 49.6, as in June the index pointed also 49.6.
Elsewhere, the euro was trading lower against the British pound and the Japanese yen, as EUR/GBP dropped by 0.47% to 0.8650 at 8:52 GMT, while EUR/JPY cross erased 0.43% to 130.79 at 8:52 GMT.
Later in the trading day, the ISM was to release a report on activity in the non-manufacturing sector in the United States.
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