Euro/Dollar fluctuation over Euro zone PMI reports

Tuesday, 23 August 2011 03:02

The Euro strengthened against the Dollar in today's trading session jumping from 1.4370 to a session high of 1.4485.  The gain was seen after the German Flash manufacturing PMI report was released higher than economists had predicted at 50.9, remaining unchanged from previous 52.0.

European Flash manufacturing PMI was released almost as expected at 49.7, lower than previous 50.4.

A little after European PMI report, the German ZEW economic sentiment was released.  The news came out much lower than expected, causing the EURUSD to fall sharply down to 1.4440.  Ecomonists expected ZEW to drop -24.8 from previous -15.1.  Instead, the index fell even further to -37.6.

ZEW economist sentiment in Europe also fell by a big amount to -40.0, from previous -7.0.

EURUSD fell at the latest news, but recovered again to trade at 1.4480.