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Home / Analytics / Forex analysis & forecasts / Forex Fundamental analysis / The Euro is back to growing. Overview for 23.08.2016
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The Euro is back to growing. Overview for 23.08.2016

The main currency pair is trading to the upside on Tuesday; it is moving above 1.13.

The EUR/USD pair is growing a bit. The current quote for the instrument is 1.1342.

According to the data published today, the compound PMI, which includes both production and nonproduction segments, in the Eurozone in August increased up to 53.3 points against the previous number of 53.2 points, although it was predicted to fall up to 53.1 points. The fact that the indicator is staying above 50 points, a very important psychological level, shows that both segments are optimistic and their activity is expanding. These calculations are made by Markit.

If we talk about the index components separately, they are as follows. Preliminary calculations for the service industry in August increased up to 53.1 points, for the manufacturing sector they decreased up to 51.8 points. The difference between these numbers and the previous ones is not significant, but still noticeable.

Judging by the PMI numbers, Markit assumes that the GDP of the Eurozone in the third quarter might add 0.3% q/q (+1.2% y/y). As a matter of fact, the pace of the economic system remains at the level, which was set at the beginning of the year. The numbers themselves look rather neutral.

In some European countries, the situation in the private sector differs a lot: in Germany, it fell in August;  however, in France, it showed a heavy growth. The statistics should stabilize more or less by October, when the seasonal factor will be excluded from it.

The EUR/USD pair is getting more expensive influenced by consistent reports and calm fundamental background, expecting news from the Jackson Hole.
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Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex bears no responsibility for trading results based on trading recommendations described in these analytical reviews.