Positive data keeps Euro stable

24 January, 2012


This morning’s better-than-expected Purchasing Manager Index (PMI) data gave the Euro a boost, before reported problems with Greek creditors reintroduced debt fears to the market. The PMI index, often seen as a growth indicator, was way above analysts’ expectations, and strengthened the Euro, reducing exchange rates for sending Euro payments. However, The Euro later lost ground (making it cheaper again) as Eurozone ministers struggle to convince Greece’s private creditors to accept a massive write-off of the value of their bonds, which is crucial for the new bailout package. Greece has until late March to refinance its existing debt. Elsewhere we have seen impmrovements for the Pound against the Canadian, US and New Zealand dollars, ahead of tomorrow’s Bank of England minutes and GDP figure in the UK. Both are released at 9.30am.