uploads/2016/02/202.png

Euro-US Dollar Currency Pair Rose 0.65% amid Mixed PMI Releases

By

Updated

Euro rose 0.65%

The euro-US dollar currency pair is directly related to the euro. It posted gains on February 2, 2016. The currency pair rose by 0.65% for the day. The euro found support at 1.08 levels after the Japanese central bank decided to go for negative interest rates. It rose to a high of 1.0915 after the Eurozone member countries’ PMIs released on a decent note. The pair ended the day at 1.0896.

Article continues below advertisement

Domestic data release with slight positive bias

Markit released the manufacturing PMIs (purchasing managers’ index) for January on February 2, 2016. The PMIs were all above 50. A reading above 50 indicates expansion in the economy. Most of the countries lived up to market expectations. Spain’s PMI came out on a positive note at 55.4—compared to expectations of 52.5. Germany’s PMI was also above the forecasts at 52.3. The Eurozone PMI remained unchanged at 52.3. The rise in the PMI in Germany and Spain was offset by the fall in other countries like France and Italy.

Impact on the market

Looking at the performance of ETFs across the Eurozone, the WisdomTree Europe Hedged Equity ETF (HEDJ) was trading lower by 0.77% on February 1, 2016. The iShares MSCI France ETF (EWQ) was trading on a flat note for the day. It fell by 0.04%.

Analyzing European ADRs (American depositary receipts), German major SAP AG (SAP) was trading lower. It fell by 0.13% on February 2, 2016. Other ADRs were also trading on a negative bias. French ADR Alcatel Lucent SA (ALU) and Finnish company Nokia Oyj (NOK) fell by 11.7% and 11.9%, respectively.

Advertisement

More From Market Realist