Flash Eurozone Services PMI Activity Index rose to 54.3 from 54.0 in July. The flash PMI suggests that the eurozone is still experiencing one of its best periods of economic growth and job creation during the past four years. GDP growth is tracking close to 0.4% so far in the third quarter, slightly above the 0.3% seen in quarter 2, highlighting the resilience of the economy through last month’s rollercoaster events of the Greek debt crisis and the ongoing negotiations to tie up the full details surrounding the third bailout.
Flash Eurozone Manufacturing PMI was unchanged at 52.4. This was in line with market expectations. Stronger growth in Germany and outside of the ‘big-two’ nations were the main growth spurs in August. Particularly pleasing is the continuation of job creation seen in these nations, especially in the ‘periphery’ where some countries are still struggling with double-digit rates of unemployment.
Euro is currently being traded few points above 1.1250 handle. Pair is likely to find support around 01.12 area and resistance above 1.13 level. Later today, Eurozone Manufacturing PMI figures are scheduled for a release.
