FOREX NEWS – Euro boosted by PMIs; counters Greek setback
Euro zone service sector PMI eases recession fears
Euro rises to near 3week high versus dollar, 4week high versus yen
Negotiations over Greek debt stall but hope for deal still alive
LONDON, Jan 24 The euro hit a near threeweek peak in volatile trade versus the dollar on Tuesday as a survey of the euro zone service sector topped forecasts and eased fears of a recession, though markets were edgy as talks to avert a messy Greek default stalled.
Surveys showed the euro zone may yet escape recession thanks to a surprise upturn in the service sector which offset ongoing contraction in manufacturing this month, briefly pushing the euro to the day’s highs.
“Germany’s recent ZEW survey was better than expected and now its PMI is also better which is lifting the overall PMI survey for the euro zone,” said Jane Foley, senior currency strategist at Rabobank.
“The market has been positioned for a downturn in Germany and maybe it has got too pessimistic on that front for now,” she added.
The common currency rose to its highest in nearly threeweeks versus the dollar of $1.3063 on trading platform EBS, before falling back to $1.3010, down 0.1 percent for the day.