Euro rebounds against the US dollar on Monday after reaching 1.0224 last week.
The Euro on its second day of recovery, trading over 1.0350 on Monday, moving away from the fresh 2-year low of 1.0224 hit on Thursday. The upward trend is backed by the December Purchasing Managers Index (PMI) announcements, which show Spanish, Italian, French, German, and Eurozone data improving from previous months and above forecasts.
Traders evaluate the consequences of political uncertainty in Italy, Austria, and Canada.
The markets are also Global political upheaval is driving the Euro higher. Italian Prime Minister Giorgia Meloni defied European unity by meeting President-elect Donald Trump at Mar-a-Lago, while Canadian Prime Minister Justin Trudeau is expected to quit this week, according to Bloomberg News.
Meanwhile, markets prepare for the first normal trading week of the year, according to the economic calendar. Traders will return to their trading desks, and financial markets are anticipated to resume their routine operations. This week’s schedule is jam-packed in both Europe and the United States, with the US Nonfarm Payrolls announcement on Friday serving as the primary focus.
Daily market Update: Euro strikes back.
The Spanish HCOB PMI for the services sector came in at 57.3. This is higher than the projected value of 54.1 and the prior reading of 53.1.
The Italian HCOB Services PMI recovered from contraction to 50.7, exceeding the 50.0 estimate and better than the previous 49.2 reading.
France’s HCOB Services PMI rebounded to 49.3, up from 48.2 the previous month and above the forecast of 48.2.
Markets will analyze European PMI and preliminary German inflation data for December.
Germany’s HCOB Services PMI rating was 51.6, higher than the estimated and previous reading of 51.4.
The German Consumer Price Index (CPI) is scheduled to be issued at 13:00 GMT. The December preliminary number is predicted to rise by 0.4% on a monthly basis, compared to -0.2% the previous month. The preliminary CPI is predicted to grow by 2.4% year over year.
At 14:45 GMT, S&P Global will release the US Services PMI reading. The final December reading is expected to remain stable at 58.5.
