22 Aug 2013
EUR/CHF is trading higher for a second consecutive date
FXstreet.com (Athens) -EUR/CHF is trading higher for a second day, with German and EU PMI data beating expectations.
Strongest growth of German PMI since January is giving a boost to the single currency
German private sector business activity continued to rise in August, extending the current period of expansion to four months. This was highlighted by the seasonally adjusted Markit Flash Germany Composite Output Index posting 53.4 in August, up from 52.1 in the previous month and above the 50.0 mark that separates expansion from contraction. What’s more, Augusts’ roundup of preliminary Euro zone PMI figures headlines the economic calendar in European trading hours. Expectations call for the region-wise composite gauge to show growth in manufacturing and service sector activity accelerated from the prior month, yielding the best reading in a year. Last but not least, investors should bear in mind that the euro continues to broadly track the relative monetary policy outlook, suggesting a stronger PMI outing, is likely to be supportive in terms of reducing ECB interest rate cut speculation.
Technical outlook on EUR/CHF
At the time of writing, EUR/CHF is trading as of 123.38, up 0.15%. The FXstreet.com Trend Index shows the pair to be slightly bullish. Daily pivot point support can be found at 1.2288, 1.2257, 1.2227, and resistance at 1.2347, 1.2378 and 1.2409, respectively.
Strongest growth of German PMI since January is giving a boost to the single currency
German private sector business activity continued to rise in August, extending the current period of expansion to four months. This was highlighted by the seasonally adjusted Markit Flash Germany Composite Output Index posting 53.4 in August, up from 52.1 in the previous month and above the 50.0 mark that separates expansion from contraction. What’s more, Augusts’ roundup of preliminary Euro zone PMI figures headlines the economic calendar in European trading hours. Expectations call for the region-wise composite gauge to show growth in manufacturing and service sector activity accelerated from the prior month, yielding the best reading in a year. Last but not least, investors should bear in mind that the euro continues to broadly track the relative monetary policy outlook, suggesting a stronger PMI outing, is likely to be supportive in terms of reducing ECB interest rate cut speculation.
Technical outlook on EUR/CHF
At the time of writing, EUR/CHF is trading as of 123.38, up 0.15%. The FXstreet.com Trend Index shows the pair to be slightly bullish. Daily pivot point support can be found at 1.2288, 1.2257, 1.2227, and resistance at 1.2347, 1.2378 and 1.2409, respectively.