EURGBP update after the PMIs

The release of the flash PMI indices for January from the EU and UK were the main data releases for the European morning session today. Data from France and Germany proved mixed. The situation in the French data is diametrically opposed to that in the German figures – the manufacturing index beat expectations, while the services gauge came in below estimates. While economists noted that price pressures continue to mount in Germany’s services sector, they also pointed out that a recession in the euro zone’s biggest economy remains highly unlikely. In terms of UK data, the reading also turned out to be mixed, with the manufacturing sector beating estimates and services coming in below expectations. Nevertheless, the GBP fell on the release as new data after retail sales and labor market figures showed that the economic situation in the UK has worsened.


  • Production: 50.8 vs. 49.7 expected (49.2 previously)

  • Services: 49.2 vs. 49.9 expected (49.5 previously)


  • Production: 47.0 vs. 47.8 expected: (47.1 previously)

  • Services: 50.4 vs. 49.6 expected (49.2 previously)

The United Kingdom

  • Manufacture: 46.7.0 vs. 45.6 expected: (45.3 previously)

  • Services: 48.0 vs. 49.9 expected (49.9 previous)

EUR and GBP weakened after mixed PMI releases, but GBP’s decline outpaced EUR. As a result, the EURGBP currency pair may trade higher today. The pair is trading up 0.6% on the day, extending a rally launched after a failed attempt to break below the support zone in the 0.8725 area, marked by a 50-session moving average and earlier price reactions. If the bulls remain in check, the nearest area of ​​resistance is to be seen above the 0.8850 mark.

EURGBP D1. Source: xStation5

“This material is marketing communication in accordance with Article 24(3) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011 /61/EU (MiFID II) Marketing communication is not an investment recommendation or information that recommends or suggests an investment strategy in accordance with Regulation (EU) No. 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (the Market Abuse Regulation) and repealing European Parliament and Council Directive 2003/6/EC and Directives 2003/124/EC, 2003/125/EC and 2004/72/EC from the Commission and Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 on supplementing Regulation (EU) No. 596/2014 of the European Parliament and of the Council with regard to standards regulatory techniques regarding the technical conditions for the objective presentation of r. investment recommendations or other information that recommends or proposes an investment strategy and for the disclosure of special interests or indications of conflicts of interest or any other advice, including in the field of investment advice, according to the law of 29. July 2005 on trading in financial instruments. (ie Journal of Laws 2019, Item 875, as amended). All information, analysis and training provided is provided for informational purposes only and should not be construed as advice, a recommendation, an investment solicitation or an invitation to buy or sell financial products. XTB cannot be held responsible for its use and the resulting consequences, as the end investor remains the sole decision-maker regarding the position of his XTB trading account. Any use of the said information and in this connection any decision made in connection with any purchase or sale of CFDs is the sole responsibility of the end investor. Reproduction or distribution of all or part of this information for commercial or private purposes is strictly prohibited. Past results are not necessarily indicative of future results and anyone acting on this information does so entirely at their own risk. CFDs are complex instruments and have a high risk of quickly losing capital due to leverage. 82% of retail investor accounts lose money when trading CFDs with this provider. You need to make sure you understand how CFDs work and can afford to take the likely risk of losing your money. With the limited risk account, the risk of loss is limited to the invested capital.

Leave a Comment